This Is My Favorite AI Chip Stock (By Far) -- and It's Not Nvidia, Intel, or Broadcom

When investors deliberation of spot stocks, 3 names usually predominate the conversation. Nvidia, of course, sits astatine the halfway of the artificial quality (AI) build-out. And different sanction that has been making headlines much precocious is Intel, which had an bonzer month, with shares rising 114% successful April alone. Finally, Broadcom has softly go the custom-silicon spouse of prime for hyperscalers.

But my favourite spot banal isn't immoderate of those. In fact, it isn't adjacent classified arsenic a semiconductor company. It's e-commerce and unreality computing elephantine Amazon (NASDAQ: AMZN) -- and the company's first-quarter results released past week whitethorn person been the clearest confirmation yet of why.

Hiding successful plain show

Amazon's spot concern -- which combines its Graviton (general-purpose cardinal processing units), Trainium (AI grooming and inference accelerators), and Nitro (network and retention virtualization) silicon -- exited the archetypal 4th of 2026 astatine an yearly gross tally complaint supra $20 billion.

Further, the concern grew astir 40% sequentially, portion year-over-year maturation was successful the triple digits.

But these header figures -- arsenic staggering arsenic they are -- are arguably understating the existent standard of Amazon's chips business. Speaking connected the company's first-quarter net call, Amazon CEO Andy Jassy said the tally complaint "somewhat masks the size."

"If our chips concern was a stand-alone concern and sold chips produced this twelvemonth to AWS and different 3rd parties arsenic different starring spot companies do, our yearly gross tally complaint would beryllium $50 billion," Jassy explained. "As champion arsenic we tin tell, our customized silicon concern is present 1 of the apical 3 information halfway spot businesses successful the world."

That past constituent is worthy pausing on. In conscionable a fewer years, Amazon has gone from a lawsuit of the spot manufacture to a adjacent of its largest players.

And guardant request looks staggering.

Amazon present holds much than $225 cardinal successful gross commitments for Trainium alone. Anchor customers Anthropic and OpenAI person signed connected for up to 5 gigawatts and astir 2 gigawatts of Trainium capacity, respectively.

Further, Trainium2 is mostly sold out, and "Trainium3, which conscionable started shipping successful 2026 and is 30% to 40% much terms performant than Trainium2, is astir afloat subscribed, and overmuch of Trainium4, which is inactive astir 18 months from wide availability, has already been reserved," Jassy said during Amazon's first-quarter net call.