Amazon is exploring selling its in-house AI chips, Trainium and Inferentia, to external customers, a move that could challenge Nvidia’s dominance in AI hardware for cloud computing.

Trading activity reflected strong market interest, with MRVL volumes surging above the three-month average.

Analysts advise weighing valuation against strong growth and financial metrics when evaluating AMZN’s prospects.

This potential external sales push follows CEO Andy Jassy’s note in a shareholder letter that a standalone chip business serving AWS and third parties could generate roughly $50 billion in annual run rate.

AWS remains strong as DeSantis notes Trainium demand is intact, with Trainium version 4 on the horizon next year and Trainium version 3 largely sold out, underscoring enduring interest despite geopolitics.

GF Score breakdown shows Financial Strength 8/10, Profitability 8/10, Growth 10/10, Valuation 7/10, Momentum 8/10, with a clear emphasis on growth.

Marvell Technology benefits as a lead design and manufacturing partner for AWS Trainium, contributing to favorable momentum heading into the second half of the year.

Amazon’s valuation remains compelling, with a TTM P/E of about 28.4x versus a five-year median near 51.7x.

The broader market is in a risk-on environment with tech leadership; Amazon’s stock rose, aided by constructive technicals including a May golden cross and a $275 resistance, with support near $226.50.