Morgan Stanley has identified which companies will benefit from Amazon’s launch of new artificial intelligence chips. Amazon Web Services, the giant tech giant’s cloud computing arm, launched its Trainium 2 artificial intelligence chip earlier this month. AWS hopes the chips will help it diversify away from Nvidia, its main supplier of artificial intelligence chips. Strong demand for artificial intelligence chips over the past two years has generated huge profits for Nvidia, making it the world’s second-largest company by market capitalization. Big tech giants such as Microsoft and Google have also launched artificial intelligence chips that compete with Nvidia. Morgan Stanley believes that seven Taiwan-based companies are expected to be “major beneficiaries” of the widespread deployment of AWS’s new chips. They are computer assembly companies Wiwynn and Hon Hai, circuit board manufacturer Gold Circuit Electronics, network equipment manufacturer Accton, server parts manufacturer King Slide, cooling system company Asia Vital Components and power supply company Delta Electronics. According to Amazon, servers running the new chip will be 40% more cost-effective than current servers running Nvidia H200 GPUs, the latest version of the AI chip currently in use. During the event, Amazon also revealed detailed information about its next-generation artificial intelligence chip, Trainium 3. They are expected to be manufactured by chipmaker TSMC and designed by Taiwanese company Alchip, said Morgan Stanley analyst Charlie Chan. —CNBC’s Michael Bloom contributed reporting.
