Amazon's AI Chip Business Surges to $25 Billion Run Rate

Amazon's second-quarter results have investors optimistic about the company's future. Net sales grew 20% year over year to $200.6 billion, and earnings per share were $5.75, a significant increase from the $1.68 reported in the same period last year.

The tech leader's shares jumped after the quarterly update, but one development caught attention: Amazon's AI chip business has reached a $25 billion annual run rate, growing at triple-digit percentages year over year.

According to CEO Andy Jassy, this demand isn't slowing down. The company's custom AI chips, such as its Trainium franchise, offer better price-performance than comparable GPUs from Nvidia and can help companies reduce expenses.

This development is seen as a bonus for investors, adding another growth driver to Amazon's already robust financial results and accelerating cloud sales growth.