Amazon's Custom Chip Business Crossed a $25 Billion Run Rate: Time to Load Up on Shares?
Amazon's custom chip business is growing in popularity.
Overview
Amazon (NASDAQ: AMZN) isn't the company some people think it is. While some assume it's just an e-commerce giant, others are beginning to realize it's also a major player in the artificial intelligence (AI) computing space. Where it is making inroads here is by entering the semiconductor chipset market.
To compete effectively in this segment of AI, companies are realizing they need to offer custom chips, and Amazon believes it has the potential to do so. Amazon's chip business just crossed a crucial threshold: A $25 billion annual run rate. This is a big deal, as it shows that Amazon's custom chips are catching on with clients.
Details
I think this is a bigger deal than the market gives Amazon credit for, and that lag in understanding makes the stock a great investment opportunity right now.
Source
Originally published at www.fool.com.