Amazon stock jumps as AWS unveils new AI chip: Is Nvidia losing its grip as Google pushes TPUs and Amazon claims Trainium 3 is 50% cheaper and 4.4× faster for AI training?

Amazon Stock Jumps After Unveiling Trainium3 AI Chip

Amazon's stock surged after the company unveiled its new in-house AI chip, Trainium3. The chip promises faster, cheaper AI model training and inference, making it a significant competitor to Nvidia's GPUs.

Key Features of Trainium3

• Faster performance: Trainium3 claims 4.4x better performance than its previous generation.
• Improved energy efficiency: Energy efficiency improves nearly fourfold, making it a more efficient option.
• Increased memory bandwidth: Memory bandwidth gets a huge boost, making it ideal for large-scale AI tasks.

Competitive Advantage

By creating its own chip, Amazon reduces its dependency on third-party suppliers, giving it more control over pricing, supply, and innovation.

Impact on Amazon's Reliance on Nvidia

For years, Nvidia dominated the AI hardware market, but Amazon's Trainium3 chip changes that. With Trainium3, Amazon offers a cheaper, high-performance alternative to Nvidia's GPUs.

Investor Reaction

The stock market reacted quickly to the news, with investors seeing long-term potential in Amazon's AI strategy. AWS continues to drive a significant portion of Amazon's revenue, and innovations like Trainium3 strengthen its growth story.

Comparison with Nvidia and Google

• Trainium3 vs Nvidia Blackwell B200: Trainium3 rivals Nvidia's Blackwell servers in compute density, though Nvidia leads in mature deployments.
• Trainium3 vs Google Trillium: Trainium3 delivers 2.52 petaflops FP8 compute per chip, while Google Trillium (TPU v6) delivers ~3-4 petaflops FP8 per chip.
• Trainium3 vs Nvidia H100: Trainium3 offers 4x better energy efficiency compared to Nvidia's H100.

Stock Performance

Amazon's stock traded at $235.46 USD as of December 2, 2025, up 0.67% or $1.58 from the previous close of $233.88, with a day's range of $233.56 to $238.97 on NASDAQ.

Market Analysis

The launch of Trainium3 signals Amazon's commitment to AI leadership and its potential to reshape the economics of AI adoption in the cloud.

Investment Outlook

Forecasts suggest Amazon's stock could reach $225.87 by quarter-end and $205.19 in one year, with long-term predictions varying to $237+ by December end.