In its third-quarter call on October 29, 2026, CEO Andy Jassy said Amazon will start selling its Trainium AI chips to outside companies in late 2027, but named no buyers, prices, volumes or revenue targets. Diluted EPS of $1.89 missed the $1.96 consensus, and shares fell 7.30% to $226.00 after hours, following a 4.25% regular-session drop. Trailing 12-month free cash flow was a $42.4 billion outflow against about $220 billion of 2026 capital spending, and selling chips outright books revenue sooner than renting them through AWS over a five-to-six-year life. The open-sourced TorchNeuron software lets PyTorch code run on Trainium and could weaken NVIDIA's CUDA lock-in, though NVIDIA still leads with data center revenue of $89.02 billion in one quarter, up 117%. AWS sales rose 39% to $46.0 billion, while supply of advanced chips remains the main constraint.
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AMZNNVDAsemiconductorsartificial intelligenceearningscloud computing
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/29/2026 | 244.23 |
| Change that session | -4.07% |
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/29/2026 | 213.72 |
| Change that session | -0.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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