On Friday, shares of Marvell Technology (MRVL.US) rose sharply, gaining over 8% to $95.83 at the time of reporting. The surge followed Amazon.com (AMZN.US)'s announcement during its earnings call that its in-house AI chip, Trainium, has seen robust demand, growing into a multi-billion-dollar business with a 150% quarter-over-quarter increase. Marvell Technology serves as the primary manufacturer for Trainium chips.

Amazon CEO Andy Jassy stated during the earnings call, "Adoption of Trainium2 continues to rise, with current capacity fully booked. This business is scaling rapidly." He added that while Trainium processors are currently used predominantly by a few large customers, the upcoming Trainium3 is expected to attract broader adoption.

Jassy highlighted that Amazon's AI platform, Bedrock, aims to become the "world's largest inference engine," with long-term potential comparable to AWS's core computing service, EC2. "The majority of token usage on Bedrock already runs on Trainium chips," he noted.

According to the plan, Trainium3 will be available for preview by customers by the end of 2025, with broader deployment expected in 2026. Jassy also emphasized that Amazon maintains strong partnerships with Nvidia (NVDA.US), AMD (AMD.US), and Intel (INTC.US), with plans to expand collaboration further.

"We continue to aggressively invest in expanding computing capacity due to surging demand," Jassy said. "Even as we rapidly scale supply, capacity is absorbed immediately upon availability. This remains a very early stage, presenting unprecedented opportunities for AWS customers."