Amazon CEO Jassy: Company Could Sell AI Chips, Competition with Nvidia and AMD Intensifies

Amazon's plan to sell AI chips could increase the company's technology revenue potential and support its share price in the short term. The 9% rise in the last 24 hours and an RSI of 83.9 indicate an overbought region, raising the likelihood of a short‑term correction. The MACD is above its signal line and the 20‑period SMA is above the 50‑period SMA, technically still supporting an uptrend. Growing competition from Nvidia (NVDA) and AMD (AMD) creates an opportunity for Amazon's chip sales, but price pressure from rivals could have indirect effects. Overall, the news generates a positive sentiment, but overbought indicators suggest only a limited upside over the next 1–3 days.

Amazon’s plan to sell AI chips may intensify competition for Nvidia, potentially exerting short‑term sales pressure. Current technical indicators (RSI 73.6, positive MACD) suggest a strong upward trend, yet the stock remains in an overbought region. Consequently, a short‑term correction or pullback is likely following the news. However, the overall rise in AI demand could benefit Nvidia in the long run. In summary, a short‑term decline is probable, though market reactions may evolve over time.

Amazon's plan to sell AI chips may pose a threat to AMD's market share. The RSI is currently at 80.9, placing the stock in an overbought region, which increases the likelihood of a short‑term correction. Although the MACD and SMA indicators still support an upward trend, the news could trigger a price decline within 1–3 days. Investors are advised to review their positions in light of their risk tolerance.