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Amazon Adds G4 Instances to Machine Learning Cloud Offerings

Zacks Equity Research

Amazon’s AMZN customer-oriented focus is evident from its strong efforts toward strengthening cloud service offerings. In fact, the company is making every effort to expand presence in the cloud computing space backed by robust product and services portfolio of Amazon Web Services (AWS).

The move to make its new GPU-powered Amazon Elastic Compute Cloud (Amazon EC2) instance, G4 instances, generally available is testament to the fact.

Notably, these instances are capable of networking throughput of up to 100 Gbps and 1.8 TB of local NVMe storage. Further, these instances feature NVIDIA T4 GPUs and 2nd Generation Intel Xeon Scalable processors.

AWS integrated with these features intends to deliver the most cost-effective ML inference to customers.

Machine Learning Inference Hold Promise

Inference is a process involved in ML, which requires several small compute jobs to be processed simultaneously. This can be done cost-effectively with the help of energy-efficient NVIDIA GPUs.

We believe G4 instances are likely to aid AWS’ traction across applications that leverage ML inferences extensively such as recommender systems, automated speech recognition, language translation, adding metadata to an image and object detection.

Additionally, the latest instances can be utilized for small-scale and entry-level ML training jobs at lower cost. Further, G4 instances aid in building and running graphics-intensive applications – video transcoding, photo-realistic design, remote graphics workstations and game streaming in the cloud.

We believe Amazon with cost-effectiveness of its new instances is expected to attract more customers to its cloud computing platform.

Amazon.com, Inc. Revenue (TTM)

 

Amazon.com, Inc. Revenue (TTM)

Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote

Portfolio Strength: A Key Catalyst

AWS allows customers with ML workloads to utilize Amazon SageMaker and AWS Deep Learning AMIs to launch G4 instances.

Apart from ML inference, AWS offers P3 instances for ML training, which is another process involved in ML. These instances help in reduction of training time from days to hours.

Further, the company has recently made Amazon Quantum Ledger Database available to general customers. This helps in storage of structured and unstructured data in the ledger on the back of its database capabilities and document-oriented data model.

AWS also announced the general availability of Amazon Forecast and AWS Lake Formation. While the former provides highly accurate forecasts by leveraging ML techniques, the latter aids in seamless building, securing and managing data lakes.

We believe expanding cloud services portfolio will continue to drive the AWS top line.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector that can be considered are Alphabet GOOGL, Adobe Systems ADBE and Rosetta Stone RST. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Alphabet, Adobe and Rosetta Stone is pegged at 17.5%, 16.25% and 12.5%, respectively.

Wall Street’s Next Amazon

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