AI predicts AMZN stock price for 2026 after Nvidia-rival chip launch

Core Insights - Amazon's entry into custom AI hardware with the launch of Trainium3 is expected to significantly enhance its valuation and stock performance, challenging Nvidia's dominance in the market [1][10] - The introduction of Trainium3 is projected to drive Amazon's stock price up to the $300–$330 range within the next 12 to 24 months, with potential for even higher valuations depending on market adoption [6][7] Group 1: Product and Performance - Trainium3 delivers 4.4 times the performance of its predecessor and reduces large-model training costs by nearly 50%, making it a competitive alternative to Nvidia's hardware [4] - The integration of Trainium3 into AWS provides Amazon with a cost and scalability advantage, positioning it to capture a significant share of the AI-infrastructure market [5] Group 2: Market Impact and Predictions - Amazon's stock closed at $234, reflecting a year-to-date gain of approximately 7%, with short-term growth attributed to the launch of Trainium3 [2] - In a more aggressive scenario, if Trainium3 becomes a standard for large-scale model training, Amazon's stock could rise to the $450–$500 range, contingent on successful market penetration [9]