Amazon.com Inc. [NASDAQ: AMZN] has quietly built one of the most significant AI chip businesses in the world, with CEO Andy Jassy disclosing on the company’s recent earnings call that its custom AI accelerator programme has accumulated more than $225 billion in committed revenue from customers.

Jassy told investors that the Trainium chip business grew nearly 40% quarter-over-quarter in Q1 2026, that its annual revenue run rate has crossed $20 billion, and that it is growing at triple-digit percentages year-over-year.

He added that if Amazon’s chip operation were structured as a standalone business, selling to both AWS and third-party customers as conventional chipmakers do, its annual revenue run rate would be approximately $50 billion.

Amazon claims Trainium3, its latest generation, offers 30% to 40% better price-to-performance versus its predecessor, and that the chips are almost completely sold out, with customers already reserving the next-generation Trainium4 chips, which are still roughly 18 months from launch.

Major AI companies including Anthropic and OpenAI are deploying Amazon’s custom processors, and Meta Platforms has announced plans to use Amazon’s Graviton server CPUs to run the compute-intensive workloads underlying its agentic AI operations.

Jassy stated on the call that Amazon has now become one of the top three data centre chip companies in the world, a remarkable shift from a company whose chip ambitions were largely viewed as a cost-reduction exercise just a few years ago.

The primary beneficiary of Amazon’s AI chip boom may be Marvell Technology [NASDAQ: MRVL], which designs custom AI chips and networking components for Amazon under a five-year partnership deepened in December 2024.

Marvell’s fiscal 2026 revenue rose 42% year-over-year to $8.2 billion, with earnings per share up 81%, and the company expects data centre revenue to grow 40% in the current fiscal year, with overall revenue growth of 30%.

Marvell projects earnings per share of at least $5.00 in the next fiscal year, and the consensus estimate for fiscal 2029 sits at $7.56, which applied to a 43 times earnings multiple would imply a potential share price of around $325.

MRVL stock has doubled in 2026, but even from current levels, that target represents potential upside of approximately 91%, underpinned by a custom AI chip market analysts project will grow at a compound annual rate of 27% through 2033.

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