{
  "id": 16344629,
  "title": "Can Amazon Take Market Share From Nvidia in the AI Chip Race?",
  "url": "https://urgent.news/2026/10/24/can-amazon-take-market-share-from-nvidia-in-the-ai-chip-race",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-24T15:15:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/24/can-amazon-take-market-share-from-nvidia-in-the-ai/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Amazon has recently unveiled a new software tool that will enable its custom Trainium AI chips to execute code written in widely-used AI programming language without any alterations. This initiative seeks to expand Amazon's custom application-specific integrated circuits (ASICs) market share, which is currently being challenged by Nvidia's (NVDA -0.59%) graphics processing units. However, Amazon is not the only major player investing in AI chips for commercial use. Alphabet recently started selling its custom AI chips directly to businesses, bypassing the need for Google Cloud leasing. Despite these endeavors, analysts anticipate that Amazon's advancements won't significantly impact Nvidia's financial performance. Amazon's AI chip business reported a $25 billion annual revenue run rate during the second quarter, which is substantial but still much smaller than Nvidia's $96.2 billion in revenue during its fiscal 2027 second quarter. The company's fourth-quarter earnings over the past year reached over $300 billion. Amazon's push to commercialize its custom chips might boost sales, but the tech giants are still heavily reliant on Nvidia chips. This dependence is evident as Nvidia's revenue grew by 106% year-over-year in its latest quarter, and CEO Jensen Huang asserts that AI demand is still accelerating. Amazon's AI chips could potentially become niche hardware, offering enough room for high, sustained revenue growth rates. Furthermore, Amazon continues to purchase Nvidia chips, having amassed billions of dollars' worth of them, pending the development of adequate data center infrastructure and connected electricity supply. Nvidia's processors are still the most reliable option in the industry, as speed and flawless execution are highly valued. Although Amazon highlights the potential benefits of its own chips for specific workloads, the tech giant still relies on Nvidia for flexible compute power. The accumulation of Nvidia's stockpiled supplies and data center servers suggests that electrical supplies will remain a significant obstacle for AI infrastructure expansion. Nonetheless, hyperscalers are not waiting for this issue to be resolved and are accelerating their capital expenditures. Nvidia's guidance suggests that its business will grow at a substantial rate despite increasing competition. Its fiscal 2027 third-quarter guidance calls for $108 billion in revenue at the midpoint, representing an 12.3% sequential growth rate. This guidance supports Huang's claim that AI demand is accelerating. While more rivals may enter the expanding AI chip market, Nvidia remains the leading provider of data center chips.",
  "summary": "Amazon's AI chips just got a leg up in their ability to compete with Nvidia's GPUs, but don't expect them to have much of an impact on Nvidia's results.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Can Amazon Take Market Share From Nvidia in the AI Chip Race?",
        "url": "https://urgent.news/2026/10/24/can-amazon-take-market-share-from-nvidia-in-the-ai-chip-race-16345310",
        "published": "2026-10-24T15:35:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}