Amazon’s Chip Business Surges to $20 Billion
Amazon’s chip division achieved an annual revenue run rate exceeding $20 billion as of Q1 2026, with CEO Andy Jassy stating it could reach $50 billion if treated as an independent entity. The chip unit experienced nearly 40% growth quarter-over-quarter and triple-digit growth year-over-year, bolstering Amazon’s cloud computing business, which is currently experiencing its highest growth rate in 15 quarters.
Amazon’s custom silicon offerings, including Graviton, Trainium, and Nitro, are pivotal as the company holds over $225 billion in revenue commitments for Trainium. Key customers like Anthropic and OpenAI have locked in substantial capacity orders, indicating strong future demand. The latest chip, Trainium3, is already nearly fully subscribed, further highlighting Amazon’s rapid ascent in the chip industry.
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