Amazon targets $50 billion AI chip market

CEO Andy Jassy told shareholders that Amazon could generate about $50 billion a year by selling its AI‑focused Trainium chips to external customers, expanding the company's already large AWS business. He said demand for the chips is strong enough that Amazon may soon ship racks to third parties.

Analysts note that AWS and Amazon’s advertising division are the fastest‑growing, highest‑margin segments, and that custom silicon and robotics investments are improving margins across the cloud business. The stock is considered undervalued relative to its earnings and cash‑flow multiples, prompting some investors to view Amazon as a long‑term growth play.