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

The artificial intelligence (AI) boom is forcing investors to rethink where real value is being created. Is it the flashy chatbot makers, or the infrastructure quietly powering them behind the scenes? Increasingly, the answer is the latter.

That shift is why semiconductor stocks have surged — but it also raises a bigger question: what if one of the largest chip companies isn’t even being valued like one? That’s exactly the case with Amazon (AMZN), whose in-house silicon business is scaling faster than most investors realize.

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A $50 Billion Chip Business, If You Look Closely

Amazon stock has delivered a 14% return year-to-date (YTD), well ahead of the S&P 500’s ($SPX) roughly 5% gain and slightly ahead of its sector. That steadiness matters. While many AI stocks have swung sharply on earnings, Amazon has quietly benefited from improving Amazon Web Services (AWS) margins and cost discipline. Investors are…