Summary

• Amazon is poised for a significant upside, as Trainium AI chips move from internal use to potential external sales, adding further upside to a $225B revenue commitment.
• Bedrock's rapid growth and TaaS model are also driving AWS revenue acceleration and margin expansion, positioning AMZN ahead of hyperscaler peers.
• I see current Wall Street price targets as too conservative, especially as EPS is expected to go 20%+ over the next three years and potential for further upward revisions.
• I reiterate a 'buy' rating, planning to add between $232–$216, as Trainium and Bedrock's growth are not fully priced in despite macro and execution risks.
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Introduction & Investment Thesis

Last week, news emerged that Amazon (AMZN) is reportedly in discussions to sell its Trainium AI chips directly into other companies' data centers. This is a new opportunity altogether that would be additional

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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