Amazon’s AI Chip Expansion
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The Nasdaq climbs 1.6%, leading a broad market rebound as chip stocks outperform despite the Fed signaling a possible rate hike this year.
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Trump confirmed Apple will partner with Intel to design and build chips in America, sending Intel up 9% and Micron surging 5%.
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Live Blog Update #3 Published
Amazon (NASDAQ:AMZN | AMZN Price Prediction) shares are climbing 2.1% after Bloomberg reported the company is in talks to sell its custom-built AI chips for use in other companies’ data centers, a move that would mark Amazon’s entry into the competitive AI hardware market as a supplier. The company notes that Trainium already powers workloads for Uber (NYSE:UBER), OpenAI, and Anthropic, a customer base that has driven more than $225 billion in revenue commitments and left the chip largely sold out.
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President Trump took a victory lap on Truth Social Thursday, declaring: “Oil is flowing, Iran can never have a nuclear weapon (the world will be safe!), the stock markets are roaring, jobs are at records, and prices are dropping (affordability!). Our country is strong, safe, and respected like never before. ‘You’re welcome!’ President DJT.”
Both Brent Crude and WTI Crude are trading in the $75/barrel area.
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The Federal Reserve held rates steady at 3.25% at its June meeting, marking Kevin Warsh’s first decision as Fed Chair, but the updated dot plot signaled a notably more hawkish path forward than markets had been pricing in. Policymakers now project a slower pace of rate cuts, with median estimates showing rates holding above 3% all the way through 2029, a timeline that pushes back against hopes for a quicker return to easier monetary policy. The shift raises real questions for markets going forward, particularly around how long high-multiple growth stocks can keep outrunning a rate backdrop that just got less accommodative, and whether market leadership broadens out or stays concentrated in the handful of AI names that have carried this rally so far.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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