Shares of Amazon.com, Inc. (NASDAQ:AMZN) are rising Wednesday after the company shared an impressive update about one of its AI compute clusters.
- AMZN is performing well relative to peers. View the charts here.
What To Know: Amazon announced that Project Rainier, one of the world’s largest AI compute clusters, is now fully operational. Artificial intelligence company Anthropic is already using it to build and deploy its AI model Claude, the company said.
Amazon’s stock jumped on the news and was last trading around $231, according to Benzinga Pro.
Project Rainier, which was first announced less than a year ago, contains nearly half a million Trainium2 chips, custom-designed chips built specifically for training artificial intelligence systems. Unlike general-purpose chips in laptops or phones, it’s specialized for processing the enormous amounts of data required to teach AI models how to complete increasingly complex tasks.
The chips provide more than five times the compute power Anthropic used to train its previous AI models. Claude is expected to be running on more than 1 million Trainium2 chips by the end of 2025.
"Project Rainier is one of AWS's most ambitious undertakings to date," said Ron Diamant, an AWS distinguished engineer and head architect of Trainium. "It's a massive, one-of-its-kind infrastructure project that will usher in the next generation of artificial intelligence models."
Amazon said it created a new type of compute solution it calls “UltraServer” by combining 16 Trainium2 chips with four physical Trainium2 servers. The solution communicates through high-speed connections called NeuronLinks.
AMZN Analysis: Amazon is trading approximately 2.8% above its 50-day moving average of $225.01, suggesting a healthy upward trend in the near term. The stock’s year-to-date performance stands at a solid 5%, reflecting a steady recovery and investor confidence in Amazon’s growth prospects. With an RSI of 58.67, the stock is in neutral territory, indicating that it is neither overbought nor oversold, which could allow for further upside potential as it approaches the upper end of its 52-week range of $161.38 to $242.52.
Key support for Amazon is identified at $212.60, which aligns closely with the 50-day moving average, providing a robust floor should the stock experience any pullbacks. On the upside, the immediate resistance level is at $232.71, just below the psychological barrier of $240, which could serve as a significant hurdle for the stock as it attempts to break through to new highs.
AMZN Price Action: Amazon shares were up 0.89% at $231.29 at the time of publication on Wednesday, according to Benzinga Pro.
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