By Adam Levy
Publication Date: 2026-02-19 21:30:00
Amazon is spending $200 billion on AI data centers this year, and this company could receive a good chunk of it.
Amazon (AMZN +0.03%) surprised investors when it shared its artificial intelligence (AI) spending plans for 2026. The tech giant is budgeting $200 billion for capital expenditures this year, nearly a $70 billion increase from 2025.
A large portion of Amazon’s new data center capacity coming online over the next couple of years will include Nvidia (NVDA 0.11%) GPUs. But a growing portion of Amazon’s spending appears to be going toward another group of chipmakers, including one that investors can buy right now at a great price.
Image source: Getty Images.
The $10 billion chip business is growing at triple-digit rates
CEO Andy Jassy told Amazon investors that Amazon’s custom chip business within Amazon Web Services is now at a run rate of over $10 billion. What’s more, it’s still growing at a triple-digit percentage rate year over year.
Amazon’s custom chip business includes its Graviton CPU and custom AI accelerator chips for training and inference, Trainium and Inferentia. Jassy was particularly happy with the demand for its Trainium chips. He said the Trainium2 chip experienced its fastest-ever ramp-up in demand. The company announced Trainium3 in December, and Jassy said he expects the chip supply to be fully committed by mid-2026. It’s also seeing strong interest in the upcoming Trainium4.
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