The share of Amazon's Trainium AI chips is rising

The share of Amazon's Trainium AI chips is rising: the revenue of Trainium2 increases immensely, and Trainium3 is the next one with the promise of delivering a 4-fold speed increase.

The waves in the AI chip sector are caused by Amazon.com Inc., which is also known as AMZN on NASDAQ, and Andy Jassy, the CEO, announced Trainium3, its next-gen AI processor, at the AWS re:Invent conference. The news reached the ear of Trainium2, which has already had its revenue run rate in the billions and is being used by more than 100,000 companies and has also produced over a million chips globally.

Trainium3: the winner with a performance of 4 times faster and more efficient

Trainium3 is built to outshine its forerunner by a great margin:

4.4x the computing power

4x efficient use of energy

almost 4x the memory bandwidth

Jassy pointed out that the chip's layered speed and efficiency are the exact opposite of the old story of the costly and powerful AI solutions in the company's hands, hence giving the traditional GPUs a run for their money.

Success of Trainium2: A Revenue Generator With Proven Track Record

Trainium2 has been at the core of Amazon's AI vision and has kept Bedrock, a platform where businesses can efficiently deploy various AI models, running in the background. Its excellent price-to-performance ratio has made it the go-to choice for companies that want high-performance AI computing at a low cost.

Besides, the chip is also a major contributor to Project Rainier, the Amazon supercomputer that was launched in October and that allows AWS to expand its presence in the AI training and inference workloads. Besides, Trainium2 revenue is largely made up of partnerships with AI startups like Anthropic, which utilizes over 500,000 chips in the project of Rainier.

Strategic Alliances and AI Innovation

Amazon is still actively involved with Nvidia, where the acceleration of Nvidia's compute technology is being integrated with AWS's custom silicon. With this cooperation, it is made certain that enterprises will have the fastest and the most efficient AI solutions available to them for training and deployment.

Amazon is also bringing out tools like Nova Forge that help companies train their customized AI models on the proprietary data and AI agents such as Kiro, DevOps Agent, and Security Agent that depict AWS's aim of having autonomous AI-driven workflows for businesses, all at the same time.

Investor Perspective

Amazon has been awarded a growth score of 90.6% and a momentum rating of 52.2% by Benzinga Edge Stock Rankings. Although the stock has grown by only 4.04% over the year, Amazon is still in a very good position to meet the AI demand in 2026. The mix of the in-house developed AI chips and the partnership with Nvidia along with tools targeting the enterprises make Amazon a powerful player in the AI hardware and cloud services ecosystem.