Amazon’s Chip Business Growth
Amazon’s in-house chip operation has reached an annual revenue run rate exceeding $20 billion, experiencing triple-digit growth year over year. Customers have committed over $225 billion in future revenue for the company’s Trainium chips, highlighting strong demand.
During the first quarter of 2026, Amazon Web Services (AWS) saw revenue growth accelerate to 28%, its fastest rate in 15 quarters, totaling $37.6 billion in revenue. The custom chip unit, which includes Graviton and Trainium processors, is projected to expand significantly, with commitments from major clients like OpenAI and Meta.
Despite the immense growth, Amazon continues to invest heavily, forecasting around $200 billion in capital expenditures for the year. This spending poses risks if demand for AI computing diminishes before these investments yield returns.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
