"( AmazonNASDAQ:AMZN) reported strong third-quarter results on Thursday, with its cloud business AWS showing robust artificial intelligence (AI)-driven demand resulting in a 150% quarterly surge in Trainium chip usage. CEO Andy Jassy outlined Amazon's expansion plans during the earnings conference call, saying it added more than 3.8 gigawatts (GW) of power in the past year, double the power capacity that AWS had in 2022."
"He also pointed out AWS is on track to double again by 2027. Jassy said that he expects Amazon to add at least another 1 gigawatt of power in the fourth quarter alone. He noted, "overall in the industry, maybe the bottleneck is power." The market responded enthusiastically to the reenergized company, boosting Amazon stock by nearly 10% to $244.22 per share, a new record high."
Amazon reported strong third-quarter results driven by AWS, where AI demand produced a 150% quarterly surge in Trainium chip usage. CEO Andy Jassy said AWS added more than 3.8 gigawatts of power in the past year, doubling 2022 capacity, and that AWS is on track to double again by 2027. Amazon expects to add at least another 1 gigawatt in the fourth quarter and flagged power as a potential industry bottleneck. Nvidia serves as a primary GPU supplier for AWS, with heightened demand for Blackwell chips, EC2 P5 instances, and machine-learning workloads. Vertiv and Talen Energy stand to benefit from the planned capacity expansion.
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