Finimize - 🦾 Amazon's chip shot

What’s going on here?

Cloud powerhouse Amazon Web Services (AWS) is aiming to challenge Nvidia’s chip dominance, building a huge AI supercomputer powered by hundreds of thousands of its own Trainium chips.

What does this mean?

Dubbed “Project Rainier”, for Washington state’s 14,000-foot peak, this beast will make it simpler for Amazon’s partner Anthropic to train AI models. The “ultracluster” of chips is said to be going live in 2025 – and is expected to be one of the biggest in the world. As if that weren’t enough, the firm rolled out a gigantic new server armed with 64 interconnected Trainium chips designed to help the cluster crank up performance while keeping costs in check. Perhaps finding it hard not to boast, Amazon also revealed that fellow Magnificent Seven club member Apple is on board as a customer. Yep: the iPhone maker is giving AWS’s Trainium chips a spin, expecting to slash costs by half in the process. And where Apple goes, others may follow.

Why should I care?

For markets: The race is on.

The chip market is red-hot – worth an estimated $118 billion now and expected to hit $193 billion in just three years. Nvidia currently dominates with a huge 95% market share, but challengers like AWS, Google, and Microsoft want to change that. So Amazon’s Trainium chip development isn’t just about cutting costs: it’s a move to break the firm’s dependence on the market leader and secure its own AI future. After all, a less Nvidia-reliant AWS means more control over AI projects and potentially better pricing for customers. AWS isn’t alone here, either: Microsoft and Google are both building chips, along with a whole bunch of startups. But it’s likely to be an uphill battle. Nvidia’s grip on the market is strong – and while challengers might have ambition, unseating a reigning champion takes flawless execution and a bit of luck.

What’s going on here?

Exclusive data from the Modern Investor Pulse showed that everyday investors are predicting a strong 2025 for stocks and crypto.

What does this mean?

Finimize spoke to thousands of retail investors from its million-strong global community – and 72% of respondents said they believe the US election results bode well for stock markets and investor confidence. Not surprising, since almost three-quarters saw gains in their portfolios immediately after the vote. In fact, that might explain a lot about the overall optimism: 71% of the survey’s respondents predicted that global stock markets will be higher in a year, and 67% said bitcoin’s price will rise over the same period. As for where most folks said they’re investing, Nvidia was a clear favorite, followed by other AI-linked Big Tech names. But the sector didn’t hold every top spot: Warren Buffett’s Berkshire Hathaway was a notable addition to the leading choices.

Why should I care?

For markets: Some stick, others twist.

Sure, 70% of respondents said they weren’t making major investment changes after the election result – but that still left 30% changing things up. Those investors were looking to increase their allocations to stocks in the tech, energy, and financial sectors, invest more in alternatives, and shrink their exposure to assets along the environmental, social, and governance theme.

The bigger picture: Don’t get carried away by the chatter.

A record 26% of retail investors said they plan to invest in crypto assets in the next year. On the surface, that may make sense: the incoming US administration is said to be pro-digital assets, and that’s helped drive the price of bitcoin to nearly $100,000. But it’s worth remembering that it’s the exiting party that oversaw the approval and introduction of bitcoin futures and spot exchange-traded funds. And that – despite what folks say – neither party is likely to be all of one thing and none of the other.