Key Facts
Amazon has unveiled its new AI chip, Trainium3, built on advanced 3nm architecture, promising four times the computing performance and energy efficiency compared to its predecessor, Trainium2. This will allow clients to cut training and inference costs by up to 50%, a significant improvement that could attract major customers like OpenAI, which is considering a $10 billion investment related to the chip.
In 2023, Broadcom saw its stock increase by 50%, fueled by the surge in demand for custom AI chips that compete with Nvidia’s expensive GPUs, offering lower costs and effective performance for targeted workloads. Amazon’s success in the AI market is critical for its Amazon Web Services (AWS), which, despite accounting for only 18% of Amazon’s total revenue, generates 66% of its operating profits and recorded a 20% growth rate in Q3 2023. Sustaining this momentum into 2026 will be vital for Amazon’s stock performance.
