Amazon Stock Dips Post-Earnings; Investors Concerned Over Future Prospects
Amazon’s stock has experienced a dip following the recent earnings report, with investors expressing concern over its future prospects.
Amazon’s Custom Silicon Milestone
In the fourth quarter, Amazon’s custom silicon business demonstrated significant growth. The company reported that its Trainium chips and Graviton processors achieved an impressive annual run rate surpassing $10 billion.
Impressive Growth Rates
This growth was marked by a triple-digit percentage increase compared to the previous year. The second-generation Trainium chips are now fully subscribed, with 1.4 million chips delivered.
Role in AI Development
These chips are instrumental in supporting most inference workloads on Bedrock, Amazon’s platform dedicated to AI application development. This infrastructure positions Amazon favorably in the rapidly evolving AI landscape.
Future Developments in Silicon Technology
- The latest generation, Trainium3, is anticipated to be fully committed by mid-2024.
- Trainium4 is scheduled for release in 2027.
With these developments, Amazon aims to strengthen its standing in the competitive tech market while addressing investor concerns about future growth. The company’s commitment to innovation in custom silicon reflects a strategic focus on enhancing its AI capabilities.
