New Delhi, June 19 -- Amazon.com stock rose Thursday after the company confirmed it is in talks to sell artificial-intelligence chips and penetrate a booming market still dominated by Nvidia.

Amazon Web Services, the company's cloud-computing arm, has opened discussions with potential customers looking to use its custom Trainium chips, Amazon's AI chief Peter DeSantis told Bloomberg. DeSantis didn't say who Amazon was negotiating with.

A company spokesperson described the talks to Barron's as "exploratory early conversations," but confirmed the interest from clients.

Amazon stock rose 3% on Thursday, while the S&P 500 rose 1.1% and the tech-heavy Nasdaq Composite gained 1.9%.

Amazon's chip business has been more than a decade in the m...