Andy Jassy Touts 'Deep Partnership' With Nvidia, But Amazon Is Doubling Down On In-House Custom Silicon For Price-Conscious Customers
Portfolio Pulse from Ananya Gairola
Amazon CEO Andy Jassy emphasized the company's commitment to developing in-house silicon, despite a strong partnership with Nvidia. Amazon's custom silicon, Trainium and Inferentia, aims to offer better price performance for AI workloads. AWS continues to grow, with a 19.1% year-over-year increase, and maintains strong partnerships, including with Nvidia. Amazon's Q3 net sales and earnings exceeded expectations, leading to a 6.07% surge in after-hours trading.

November 01, 2024 | 8:13 am
News sentiment analysis
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NEUTRAL IMPACT
Nvidia maintains a strong partnership with Amazon, particularly in AI and R&D projects. Despite Amazon's focus on in-house silicon, Nvidia's collaboration with AWS remains significant, as evidenced by Project Ceiba.
While Amazon is developing its own silicon, the ongoing partnership with Nvidia, especially in AI and R&D, suggests that Nvidia's role remains important. The news does not indicate a negative impact on Nvidia's stock in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Amazon is focusing on developing its own silicon, Trainium and Inferentia, to offer better price performance for AI workloads. Despite this, Amazon maintains a strong partnership with Nvidia. Amazon's Q3 results exceeded expectations, leading to a 6.07% increase in after-hours trading.
Amazon's commitment to in-house silicon development indicates a strategic move to enhance its AI offerings, which could attract more customers seeking cost-effective solutions. The strong Q3 results and subsequent stock price increase reflect positive investor sentiment.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100