Amazon's new Inferentia chip can boost AWS's competitiveness, growth, analyst says
Noah Berger

The newly designed Amazon (NASDAQ:AMZN) Web Services Inferentia chip is set to be mass produced and shipped in the fourth quarter, which could increase the cloud computing giant's competitiveness and growth, according to a top analyst.
TF International Securities analyst Ming-Chi Kuo tweeted on Monday that the new application specific integrated circuit, or ASIC, chip from Amazon (AMZN) Web Services, is designed by Alchip and uses the advanced 7 nm node, which improves its performance and latency.
And given that Amazon (AMZN) said on its latest earnings call that AWS continues to see strong growth and is seen as a "critical profit driver" during a time of economic weakness, Kuo noted that the new chip "can strengthen AWS's competitiveness and growth momentum further."
During the second quarter, Amazon (AMZN) generated $121.2B in revenue, including a 33% rise year-over-year for Amazon Web Services.
Alchip outsources chip manufacturing to a number of companies, including Taiwan Semiconductor (TSM).
Kuo also noted that the new Amazon (AMZN) AWS Inferentia chip has a higher unit price to aid Alchip's revenue and profits and boost the number of U.S. customers to lower its geopolitical risks. 
On Monday, it was reported that hedge fund Bridgewater Associates had taken a new stake in Amazon (AMZN), buying more than 149,000 shares during the second quarter.