Amazon (Buy, $340 target) A different AI Winner narrative emerging as Trainium3 GA + AI Factories support our above-consensus AWS estimates
AWS CEO Matt Garman gave the Opening Keynote of re:Invent 2025 earlier today, and it was accompanied by several new announcements, the most important of which we review below:1. Trainium3 is now generally available and first details on Trainium4
2. AI Factories provide a growth vector to bypass datacenter bottlenecks
3. Nova Forge model facilitates a new take on enterprise relevant fine tuning
4. Kiro AI coding agents extended and updated – now AMZN’s internal autonomous tool
We think several announcements (especially Trainium3 general availability) are supportive of our well above-consensus AWS revenue growth estimates over the next year.
Amazon.com serves consumers through its online and physical stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and the company develops and produces media content. The company operates customer service centers and provides programs that enable sellers to grow their businesses, sell their products in its stores, and fulfill orders through the company The company serves developers and enterprises of various sizes, including start-ups, government agencies, and academic institutions, through its Amazon Web Services segment, which provides a set of global compute, storage, database, and other service offerings. The company also provides services, such as advertising.
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