Amazon Chip Business Tops $20 Billion Run Rate as Nvidia Faces Rising In-House Competition
Updated
Updated · The Motley Fool · May 13
Amazon Chip Business Tops $20 Billion Run Rate as Nvidia Faces Rising In-House Competition
4 articles · Updated · The Motley Fool · May 13
$20 billion in annual revenue run rate marks Amazon's chip business crossing a new threshold, with Trainium, Graviton and Nitro growing at a triple-digit year-over-year pace.
Andy Jassy said the operation would be running at about $50 billion annually if Amazon sold this year's chip output to AWS and outside customers like standalone chipmakers do.
That growth is feeding AWS, where first-quarter revenue rose 28% to $37.6 billion and operating margin reached 37.7%, while Trainium2 is largely sold out and Trainium3 shipments have begun.
Amazon says it has more than $225 billion in revenue commitments tied to Trainium alone, though its AI buildout is costly: first-quarter capital expenditures hit $43.2 billion and full-year 2026 spending is targeted near $200 billion.
The milestone sharpens the contrast with Nvidia ahead of its May 20 results: Nvidia still expects about $78 billion in quarterly revenue, but major AI customers are increasingly backing custom chips through Amazon, Broadcom and their own designs.
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