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Amazon (NASDAQ:AMZN) is slated to host its annual re:Invent conference next week and the tech giant’s cloud computing unit is likely to “shine” thanks to a deluge of generative artificial intelligence announcements, investment firm Monness, Crespi, Hardt said.
Analyst Brian White, who has a buy rating on Amazon (AMZN) shares, said there will be a number of key Amazon executives hosting keynotes this year, including Amazon Web Services CEO Adam Selipsky. At last year’s re:Invent conference, OpenAI showed off ChatGPT to the world, and while White isn’t expecting as transformational, there is likely to be a number of important AI announcements, he said.
As for the financial strength of the unit, it looks as if AWS has stabilized, based off the previous quarter, with profitability improved. AWS’s operating margins in the most recent quarter rose to 30.3%, up from 24.2% in the second-quarter and 26.3% in the year-ago period, due in large part to layoffs.
White also pointed to several recent AWS announcements as examples of continued performance, including the general availability of Amazon Elastic Compute Cloud Capacity Blocks for machine learning, which runs on Nvidia’s (NVDA) H100 GPUs.
Other highlights include its recent investment in generative AI startup Anthropic, Meta Platforms (META) bringing its Llama 2 large language model to Amazon Bedrock and the general availability of its Amazon Titan Embeddings LLM, among others.