Amazon, the world's largest e-commerce company, has seen its stock price reach an all-time high amid continued upward momentum. Investor confidence surged after news broke that Apple plans to use Amazon's custom-built AI chip for its artificial intelligence (AI) system training.
As of 12:40 PM Eastern Time (9:40 AM Pacific Time) on December 4, Amazon’s stock price climbed 2.16% from the previous day to $218.04. At one point, it reached $219.99, just shy of the $220 mark, surpassing the previous record of $215.90 set on November 14.
Driving this rally is Amazon’s next-generation AI chip, Trainium2. Apple announced during Amazon Web Services’ (AWS) annual conference, re:Invent, in Las Vegas that it plans to incorporate Trainium2 into the training process for its AI system, Apple Intelligence.
Apple representatives highlighted that using Trainium2 in pretraining could boost efficiency by up to 50%, underscoring the potential benefits of this collaboration.
This development signals a challenge to NVIDIA, which dominates over 80% of the AI chip market. Amazon, for its part, unveiled new data center servers powered by the Trainium2 chip, marking its determination to compete head-to-head with NVIDIA.
Amazon’s stock has been on a sharp upward trajectory since its Q3 earnings release. The AWS division, previously experiencing slower growth, recorded a 19% growth rate in Q3, exceeding market expectations.
While Amazon retains the largest market share in the global cloud sector, it faces fierce competition from Microsoft and Google. The Trainium2 initiative highlights Amazon’s strategy to solidify its technological edge in both cloud and AI domains.
As of December 4, Amazon's market capitalization swelled to $2.292 trillion, widening its lead over fifth-ranked Google at $2.131 trillion. With the escalating race in AI and cloud technology, Amazon’s bold moves continue to draw significant industry attention.