By Daniel Sparks, The Motley Fool
Publication Date: 2026-05-03 19:27:00
When investors think of chip stocks, three names usually dominate the conversation. Nvidia, of course, sits at the center of the artificial intelligence (AI) build-out. And another name that has been making headlines more recently is Intel, which had an extraordinary month, with shares rising 114% in April alone. Finally, Broadcom has quietly become the custom-silicon partner of choice for hyperscalers.
But my favorite chip stock isn’t any of those. In fact, it isn’t even classified as a semiconductor company. It’s e-commerce and cloud computing giant Amazon (NASDAQ: AMZN) — and the company’s first-quarter results released last week may have been the clearest confirmation yet of why.
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Hiding in plain sight
Amazon’s chip business — which combines its Graviton (general-purpose central processing units), Trainium (AI training and inference accelerators), and Nitro (network and storage virtualization) silicon — exited the first quarter of 2026 at an annual revenue run rate above $20 billion.
Further, the business grew nearly 40% sequentially, while year-over-year growth was in the triple digits.
But these headline figures — as staggering as they are — are arguably understating the true scale…
