Amazon Web Services (AMZN) just launched its newest chip, the Graviton5, which it says is its fastest and most energy-efficient central processing unit (CPU) yet. Even though AWS still uses chips from companies like Nvidia (NVDA), Intel (INTC), and AMD (AMD), it has made it a priority to give customers more options. In fact, this is the third year in a row that over half of the new CPUs added to AWS were powered by Graviton, which shows just how important the chip has become in AWS’ lineup.
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According to AWS, Graviton5 gives users up to 25% better performance than the previous version while still being energy efficient. Interestingly, big names like Adobe (ADBE), Airbnb (ABNB), SAP (SAP), Snowflake (SNOW), Synopsys (SNPS), Atlassian (TEAM), Pinterest (PINS), and Epic Games are already using Graviton chips to power tasks like real-time gaming, databases, and data analytics.
Graviton5 also comes with major upgrades, such as 2.6 times more L3 cache per core than Graviton4 and 15–20% more network and storage speed. In addition, it’s made with 3-nanometer technology, the same tech used in AWS’ new Trainium3 chip, which also launched this week. Notably, the M9g version of Graviton5, designed for general tasks, is now available for preview, while versions for compute-heavy (C9g) and memory-heavy (R9g) jobs will arrive in 2026.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 43 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $295.63 per share implies 29.3% upside potential.
