The Nasdaq Composite gained 2.3%, while the S&P 500 advanced 0.8%.AI Chip Expansion Adds Fresh CatalystAmazon’s gains came as investors embraced a broader risk-on trade. Technology stocks led the market with a 2.9% advance, while seven of the 11 S&P 500 sectors traded higher.Amazon AI chief Peter DeSantis told Bloomberg the company has started discussions with potential customers but declined to identify them.“We view AI infrastructure as rapidly evolving,” DeSantis said. “And we’re constantly looking at ways to get to more customers.”According to Bloomberg, demand for sovereign AI infrastructure is growing, particularly outside the United States. DeSantis said Amazon Web Services has not been affected by Europe’s efforts to reduce its dependence on U.S. technology.He added that Amazon’s third-generation Trainium chips are “largely sold out,” while customer interest is already building for the fourth-generation chips expected next year.DeSantis also said selling Trainium chips outside AWS would not hurt Amazon’s cloud business because “there’s so much underconsumption in AI.”Trainium chips are already available through AWS and are used by customers including OpenAI, Anthropic, and Uber Technologies, Bloomberg reported.Amazon Technical Picture Remains MixedAmazon’s longer-term trend remains constructive, although short-term technical signals remain mixed.The stock is trading about 4.8% above its 200-day simple moving average and 3.6% above its 100-day moving average. However, it remains 4.1% below its 20-day moving average and 5% below its 50-day moving average, suggesting it is still recovering from its recent pullback.Momentum indicators also remain cautious. The moving average convergence divergence indicator is below its signal line, while the histogram remains negative, indicating bullish momentum has weakened.The moving averages also present a mixed picture. The 20-day moving average remains below the 50-day moving average, a short-term bearish signal. However, the 50-day moving average remains above the 200-day moving average following the golden cross formed in May, supporting the longer-term uptrend.Technical analysts are watching resistance near $275, close to the stock’s 52-week high of $278.56. Initial support is around $226.50.Earnings And Analyst OutlookAmazon is expected to report second-quarter results on July 30.Wall Street expects earnings of $1.81 per share, up from $1.68 a year earlier. Revenue is projected to increase to $196.03 billion from $167.70 billion.The stock carries a consensus Buy rating with an average analyst price forecast of $320.86. Recent analyst actions include: