Mizuho's Jordan Klein on Amazon's $25B Custom Silicon Run Rate

In a detailed market analysis following major tech earnings, Mizuho Securities Managing Director Jordan Klein outlined why Amazon is pulling ahead in enterprise computing while Apple faces unexpected headwinds. Speaking on Bloomberg Technology, Klein pointed to cloud growth acceleration and proprietary hardware strategies as the primary drivers re-shaping Big Tech valuations this quarter.

Who Is Jordan Klein

Jordan Klein serves as Managing Director and TMT Sector Specialist at Mizuho Securities. With extensive experience tracking technology, media, and telecommunications equities, Klein provides institutional investors with sharp tactical insights on earnings reports, hardware supply chains, and semiconductor momentum.

The full discussion can be found on Bloomberg Technology's YouTube channel.

Custom Silicon Delivers Double Win for AWS

The key highlight from Amazon's latest financial disclosure is the performance of Amazon Web Services. AWS recorded a top-line growth acceleration of 37 percent, reassuring Wall Street that corporate artificial intelligence investments are directly translating into revenue expansion. Beyond top-line growth, Amazon revealed that its custom chip business, which rents compute capacity based on proprietary hardware like Graviton and Trainium, has achieved an annual revenue run rate of $25 billion.

This in-house silicon strategy provides Amazon with two structural advantages over cloud rivals reliant purely on third-party hardware. "Not only does it enable them to get supply right, because it's so difficult to get graphics processors from Nvidia, it also enables them to offer that to their customers probably at a lower cost," Klein noted during the interview. By producing custom chips, Amazon avoids surrendering margin to Nvidia (NASDAQ:NVDA) while offering competitive compute pricing to enterprise customers.

StartupHub.ai data rates Amazon (NASDAQ:AMZN) at a score of 81/100, backed by verified financial activity including $10B raised in 2025. In market coverage, Amazon continues to outpace tracked e-commerce and retail peers such as Coupang (score 50/100) and Qoo10 (score 22/100), while trailing Wayfair (score 85/100) in specific vertical focus metrics.

Consumer AI Drives E-Commerce Basket Size

While institutional investors remain fixated on cloud infrastructure, Amazon revealed critical non-financial data points regarding consumer touchpoints. Customers who interact with consumer-facing features like Alexa Plus show a higher propensity to sign up for Prime subscriptions and build larger shopping baskets on Amazon.com.

Klein highlighted that Wall Street has largely ignored this e-commerce efficiency because data centers generate the vast majority of operating profit. However, with Amazon trading at a forward earnings multiple in the mid-to-low 20s, the stock presents a strong valuation relative to traditional retail giants like Costco (NASDAQ:COST) and Walmart (NYSE:WMT).

Apple Suffer Capital Rotation to Enterprise Cloud

The contrast between Amazon and Apple (NASDAQ:AAPL) became evident as Apple shares fell 9 percent after earnings. According to Klein, investors had used Apple as an anti-risk holding in prior weeks, but disappointing service growth and supply constraints triggered a rapid repositioning.

"There was a ton of money hiding in Apple as the anti-safety AI trade that's going to come out. And it's going back to Microsoft and Amazon and some others," Klein explained. Apple holds a StartupHub score of 83/100, but faces execution risks heading into its next hardware cycle. With component miscalculations affecting initial production orders and price increases expected for incoming flagship models, Wall Street remains cautious on whether consumer demand will sustain elevated price tiers into next year.