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

The article argues Amazon’s in-house chip business — Graviton CPUs and Trainium AI chips — is a material and underappreciated driver of AMZN’s value. Amazon disclosed a $20 billion annualized revenue run rate from chips monetized through AWS EC2 and said the business could approach $50 billion if chips were sold directly, putting it ahead of AMD and near Intel and Broadcom scale. With enterprise customers like Meta, OpenAI and Anthropic using Amazon’s silicon and capacity constraints emerging, the piece suggests the market may be undervaluing AMZN’s exposure to AI infrastructure. Combined with AWS margin improvement and steady YTD performance, the article takes a bullish view that Amazon’s chip angle could meaningfully re-rate the stock.