Amazon Partners with Meta to Deploy Tens of Millions of Graviton Chips
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy AMZN?
Source: seekingalpha
- Partnership Expansion: Meta plans to deploy tens of millions of AWS Graviton processors under a new agreement, indicating a deepening technological collaboration between the two companies to enhance AI capabilities.
- Technological Edge: The Graviton5 chip features 192 cores and a cache five times larger than its predecessor, built on 3-nanometer technology, providing greater bandwidth to support efficient operation of agentic AI systems, thereby boosting Meta's competitiveness in the AI sector.
- Strategic Imperative: Meta's head of infrastructure emphasized that diversifying compute sources is a strategic necessity as AI ambitions expand, and this partnership will provide a robust computing foundation to further develop its AI technologies.
- Positive Market Reaction: Amazon's shares rose nearly 2% in pre-market trading on Friday, while its partners Marvell, Astera Labs, and Credo Technology saw their stocks increase by 3% and 3.5%, reflecting market optimism regarding this collaboration.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 263.990
Low
175.00
Averages
280.01
High
325.00
Current: 263.990
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth Potential: AWS's AI revenue reached a $15 billion run rate earlier this year, and is expected to accelerate in the coming years, although this may lead to negative free cash flow in the short term due to new data center construction.
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- Ongoing Collaboration: Despite losing exclusivity, Microsoft will remain OpenAI's primary cloud partner and retain a license for OpenAI's intellectual property through 2032, indicating that their partnership remains strong and that Microsoft's positioning in the AI landscape is still crucial.
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See More
