US Stock Movement | Amazon's AI chip demand surges, major foundry manufacturer Marvell Tech rises over 8%
Amazon stated in its earnings call that the demand for its self-developed AI chip Trainium is strong, becoming a core business worth billions of dollars, with a quarter-on-quarter growth of 150%. Major foundry manufacturer Marvell Tech saw its stock price rise over 8%, closing at $95.83. Amazon CEO Andy Jassy revealed that the adoption rate of Trainium2 has increased, and production capacity has been booked, with expectations that the new generation Trainium3 will attract more customers. Amazon is also collaborating with NVIDIA, AMD, and Intel, planning to expand computing power to meet demand
According to Zhitong Finance APP, on Friday, Marvell Technology (MRVL.US) saw its stock price rise. As of the time of publication, the stock was up over 8%, trading at $95.83. This came after Amazon (AMZN.US) stated in its earnings call that the demand for its self-developed AI chip Trainium is strong, having become a core business with a scale of billions of dollars and a quarter-on-quarter growth of 150%, with Marvell Technology being the main contract manufacturer of the Trainium chip.
Amazon CEO Andy Jassy stated during the earnings call, "The adoption rate of Trainium2 continues to rise, and current capacity is fully booked, with this business rapidly expanding." He also revealed that while the Trainium processors are currently mainly used by a few large customers, the upcoming next-generation product Trainium3 is expected to attract more customers.
Jassy pointed out that the AI platform Bedrock that Amazon is building aims to become "the world's largest inference engine," with long-term potential comparable to AWS's core computing service EC2. "Currently, the vast majority of token usage on Bedrock is running on Trainium chips," Jassy added.
According to the plan, Trainium3 will be available for customer preview by the end of 2025, with larger-scale deployment in 2026.
Additionally, Jassy emphasized that Amazon continues to maintain close partnerships with NVIDIA (NVDA.US), AMD (AMD.US), and Intel (INTC.US), and plans to further expand collaboration with these chip suppliers in the future. He stated, "We will continue to actively invest in expanding computing power because we see an explosion in demand. Although we are rapidly increasing capacity, it is being consumed as soon as it is released. This is still a very early stage and presents unprecedented opportunities for AWS customers."
