Amazon Secures $1B Deal with Synopsys Amid Chip Technology Push
Amazon has made several significant announcements recently, including a multi-year deal worth over $1 billion with Synopsys to use its silicon IP and engineering tools for Graviton and Trainium chips.
The agreement will see Amazon utilize Synopsys' products across various areas such as networking, storage, and security. This partnership marks an important step in Amazon's efforts to develop advanced chip technology.
Rosenblatt has raised its price target for Amazon to $360, citing the company's strength in e-commerce, logistics, cloud computing, data/personalization edge, Alexa shopping tools, and steps blocking third-party AI agents.
A16z has warned that AI assistants may steer purchases, potentially sidestepping Amazon's sponsored listings and threatening its retail ad revenue tied to its shopping platform.