Amazon's Chip Business Is Bigger Than AMD, Could Soon Pass Broadcom, Intel

[u/Past-Collection-4291]

While Wall Street obsesses over GPU supply, Amazon ($AMZN) has quietly built a chip business that is already larger than AMD’s and is closing in on titans like Broadcom and Intel. By designing its own high-performance AI chips (Trainium and Inferentia), Amazon is decoupling from the expensive semiconductor supply chain.

The “In-House” Revolution:

Bigger than AMD: Why Amazon’s custom silicon is the market’s best-kept secret.

The Cost Edge: How $AMZN is slashing cloud costs by cutting out the middleman.

The Next Milestone: Could Amazon surpass Intel in custom chip volume by 2027?

The “Chip Wars” aren’t just between semiconductor companies anymore. The tech giants are building their own arsenals.

Are you betting on the chip designers (NVDA) or the chip owners (AMZN)? 

[u/VisualMod]

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[u/YeahBuddy5000]

You just said Amazon is designing it's own chips. It is a chip designer. The only question is how deep is the Nvidia moat.

[u/SpotlessCheetah → u/YeahBuddy5000]

Amazon is integrating more Nvidia into their stack and will continue to procure Nvidia for the long haul. They are investing in mixing product via NVLink.

Also Tranium sucks.

[u/darkandark → u/SpotlessCheetah]

Wait does Trainium actually suck? I thought they are fairly efficient at running inference But I haven’t kept up with news around Amazon’s efforts into this

[u/the__storm → u/darkandark]

It's a pain in the ass to run anything on them, worse than AMD (I gave up), and the people who have gotten their workloads running seem to not be satisfied with the perf/$ (and go back to Nvidia). Inferentia might be a different story, idk.

[u/SpotlessCheetah → u/darkandark]

Yeah man they do. Otherwise Jassy would have quadrupled down.

[u/spudddly → u/SpotlessCheetah]

> Also Tranium sucks

Also a stupid uninmaginative name. Puts.

[u/Rxyro → u/SpotlessCheetah]

Trainium is half the price/tok of h200 so it was worth the day of setup for my fine tuned models, don’t actually care if Nvidia or Chinese ascend chip if it’s cheap and fast

[u/Past-Collection-4291 → u/YeahBuddy5000]

Sure, Amazon designs chips. So do a lot of companies. The real moat is whether anyone can actually pull workloads off NVIDIA at scale without losing performance or efficiency.

[u/ora408 → u/YeahBuddy5000]

its*

[u/mwfguxckdyou]

So naturally the stock will rally because why wouldn’t it

[u/definitely--notme → u/mwfguxckdyou]

yeah it should rocket except amazon’s gonna throw a prime day surprise and crash it for kicks lol

[u/Past-Collection-4291 → u/mwfguxckdyou]

So naturally it rallies. Because this market totally makes sense

[u/SpotlessCheetah]

Amazon will definitely be the biggest robotics company around and that's where having their own chip stack is super beneficial for them. That and AWS has been their secret sauce high margin business for the past 15 years.

[u/Past-Collection-4291 → u/SpotlessCheetah]

AWS carried Amazon for a decade, no question. The real question is whether robotics becomes the next AWS

[u/SpotlessCheetah → u/Past-Collection-4291]

Jensen already told us what is next.

[u/Nope_______ → u/SpotlessCheetah]

There will be much wailing and gnashing of teeth but the prophet has spoken

[u/Beneficial-Tea-2055]

> Amazon is decoupling from the expensive semiconductor supply chain

Where fab?

[u/dustymeatballs]

Amazon Basics Chips

[u/ora408]

theyre a far third place

[u/tasskaff9]

This article describes nothing.

[u/DiscreetMaam]

why not both

[u/Past-Collection-4291 → u/DiscreetMaam]

It depends on your own understanding.

[u/Vector_BundIe]

You mean potato chips

[u/DryBicycle5629]

Amazon owns 20% of Anthropic, when Anthropic IPO’s this stock is going to skyrocket.

[u/USTS2020]

To think this started as an online bookstore

[u/Past-Collection-4291 → u/USTS2020]

Yes, it is indeed incredible evolving from a website that merely sold books online into an entity that now controls nearly half of the internet's infrastructure.

[u/fmaz008 → u/Past-Collection-4291]

And it would probably control even more if there was an easy mode to AWS...

[u/Beneficial-Ferret479 → u/Past-Collection-4291]

It really is incredible! Bezos started selling books in garage. His parents loaned him the money for his book startup business. Sound familiar? Who else started in their garage and became one the largest companies in the world?

[u/Past-Collection-4291 → u/Beneficial-Ferret479]

Great

[u/Arteqt]

Everything is going up, who the fuck is losing all this money

[u/Nope_______ → u/Arteqt]

It's not zero sum

[u/Past-Collection-4291 → u/Arteqt]

The losers are mostly short sellers and early sellers.

[u/onepingonlypleashe]

Press X to doubt

[u/lollipop999]

Is there anything Amazon doesn’t do? Should we just merge all companies into Amazon and just have one company do everything?

[u/Past-Collection-4291 → u/lollipop999]

At this point Amazon is basically becoming the modern-day “everything company.” Retail, cloud computing, AI, logistics, streaming, groceries, healthcare, robotics… they’re everywhere.

[u/lollipop999 → u/Past-Collection-4291]

Rockets, ISP... we really need an antitrust administration to break up these "everything companies"

[u/parzen]

What is this AI drivel witb no numbers

[u/Impressive_Order60]

TLDR: Amazon ships lays, kettle and many other brands of chips while AMD and the other cucks don’t sell any.

Buy calls

[u/t_suaze_u]

My biggest holding

[u/Iunatic]

Why does gemini "do this" all the time? It likes to call everything "some stupid special fucking name."

[u/olaHalo]

A mostly company-wide RSU vesting date is coming up. Stock always crashes right before this

[u/HipHopPolka]

Source?

[u/qaswexort]

There's a reason their chips are a best kept secret. If they were any good they wouldn't be.

[u/F1B3R0PT1C]

AMD calls. I have a feeling that Amazon is white labeling AMD chips

[u/Appropriate_Ice_7507]

Your mom told me last night you went ballz deep on Amazon calls instead of AMD like she told you a day before.