Morgan Stanley has identified the companies that are set to benefit from Amazon ‘s launch of its new artificial intelligence chip. The Big Tech giant’s cloud computing division Amazon Web Services launched its Trainium 2 AI chip earlier this month. AWS hopes these chips will help it diversify away from Nvidia , its primary AI chip supplier. Strong demand for AI chips over the past two years has led to outsized profits for Nvidia, and has made it the second most valuable company in the world. Big Tech giants, such as Microsoft and Google , have also launched AI chips that compete with Nvidia’s. Morgan Stanley believes seven companies, all based in Taiwan, are expected to be “major beneficiaries” of a widespread deployment of AWS’ new chip. They are computer assembly firms Wiwynn and Hon Hai , circuit board maker Gold Circuit Electronics , networking gear maker Accton , server parts maker King Slide , cooling system company Asia Vital Components and power supply firm Delta Electronics . According to Amazon, servers running the new chip will offer up to 40% better price-to-performance compared than current servers that run Nvidia H200 GPUs, the latest version of AI chips currently being used. During the event, Amazon also revealed details of its next-generation AI chips, Trainium3. They are expected to be built by chipmaker TSMC and will be designed by Taiwanese firm Alchip , according to Morgan Stanley analyst Charlie Chan. — CNBC’s Michael Bloom contributed reporting.