By Marc Guberti, The Motley Fool
Publication Date: 2026-10-24 15:35:00
Amazon (NASDAQ: AMZN) recently launched a new software tool that will allow its custom Trainium AI chips to run code written in the most popular AI coding language without modification. It’s a move aimed at boosting the potential for Amazon’s custom application-specific integrated circuits (ASICs) to take market share away from Nvidia‘s (NASDAQ: NVDA) widely used graphics processing units as demand for AI chips continues to swell.
Amazon isn’t the only tech giant working on its own AI chips for commercial use. Alphabet recently began making its custom AI chips available for sale directly to enterprises, rather than limiting them to being leased through Google Cloud. However, investors shouldn’t expect these developments to have a meaningful effect on Nvidia’s financial results.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Amazon has a relatively small chip business
Amazon’s AI chip business wrapped up the second quarter with a $25 billion annual revenue run rate. That’s not small, but it pales in comparison to the $96.2 billion in revenue Nvidia booked in its fiscal 2027 second quarter alone, or the more than $300 billion it booked over the past four quarters.
While…
