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
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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
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