Amazon unveils Trainium3 chip and UltraServers to enhance AI training and inference capabilities.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Should l Buy AMZN?
Source: SeekingAlpha
Launch of Trainium3: Amazon Web Services has introduced the Trainium3, its first 3nm AI chip, which powers the new Trainium3 UltraServers that are four times more energy efficient and offer nearly four times the memory bandwidth compared to the previous Trainium2 UltraServers.
Cost Reduction for Customers: Companies using Trainium, such as Anthropic and Karakuri, have reported up to a 50% reduction in training costs compared to traditional GPUs, with some, like Decart, achieving 4x faster frame generation for real-time generative video at half the cost.
Future Developments: Amazon is already developing the Trainium4 series, which will integrate with Nvidia's NVLink Fusion technology, allowing for a cost-effective AI infrastructure that combines GPU and Trainium servers within common MGX racks.
Market Context: The Bank of England has cautioned that the AI boom, driven by debt, may face challenges in stretched markets, while Cyber Monday has set online shopping records, aided by discounts and generative AI.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 232.990
Low
250.00
Averages
294.69
High
340.00
Current: 232.990
Low
250.00
Averages
294.69
High
340.00
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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