Amazon shares rise after annual cloud conference

Investing.com -- Amazon's stock is up over 2% Wednesday following its 13th annual AWS re:Invent conference, where the company highlighted its growing emphasis on proprietary technology and advancements in artificial intelligence. 

The event, held in Las Vegas, drew over 60,000 attendees and showcased Amazon (NASDAQ:AMZN )'s latest innovations, including custom chips, generative AI models, and retail-focused AI solutions.

A key highlight was said to be the announcement of the Trainium2 chip, now available in AWS EC2 instances, with Trainium3 chips expected in late 2025. 

Apple’s Senior Director of Machine Learning and AI, Benoit Dupin, endorsed the Trainium2, stating it delivered "up to 50% improvement in efficiency in pre-training” for Apple’s AI products. 

BofA analysts noted the reduced focus on Nvidia (NASDAQ:NVDA ) GPUs compared to previous years but highlighted that AWS will still support Nvidia’s new Blackwell chips in early 2025, suggesting a balanced approach to supporting both proprietary and third-party solutions.

Amazon also entered the large language model (LLM) space with Nova-branded models. CEO Andy Jassy introduced innovations like Canvass for image generation, Reel for video creation, and a multi-modal “any-to-any” model set for launch in mid-2025. 

Amazon reportedly indicated that Nova models are 75% more cost-effective than competitors and integrated into Amazon's Bedrock AI platform.

The advancements extend to Amazon’s retail operations, where AI-driven improvements are said to be boosting efficiency. GenAI-powered chatbots have increased customer satisfaction, while AI-enhanced inventory management has improved demand forecasting accuracy by 10% and regional capacity estimates by 20%.

BofA remains bullish on Amazon, citing potential AWS revenue acceleration in 2025 due to increased availability of advanced chips and the adoption of GenAI features. 

The bank sees Nova reducing perceived LLM advantages of competitors like Microsoft (NASDAQ:MSFT ) and Google (NASDAQ:GOOGL ). BofA maintains a Buy rating with a $230 price target, reflecting confidence in Amazon’s expanding AI and cloud strategies.

 

Source: Investing.com