The market valuation of the tech giant Amazon has topped the market valuation of $3 trillion for the first time led by sharp rally.
The uptick was driven following strong earnings and signs that the AI boom is driving fresh demand for its cloud-computing services.
Amazon and Microsoft are the only two of the “Magnificent Seven” companies, out of the six that have reported so far, whose AI spending has paid off in investors’ eyes. Tesla, Alphabet and Meta were punished as their massive spending plans hit free cash flow last quarter.
Amazon has been pouring billions to build out its AI infrastructure, and it disclosed a new investment in Anthropic in April, which follows Amazon’s announcement earlier this year that it would invest up to $50 billion in OpenAI.
Amazon shares were last up 5.5% at $286.20, hitting a record high and taking their yearly gains to over 23%, and the company’s stock surged 15% after it delivered its strongest cloud growth in more than four years.
Earlier, Apple, Microsoft, Alphabet and Nvidia recorded a market value of $3 trillion in the past with Nvidia currently being world’s biggest company with a market capitalization close to $5 trillion.
Amazon took over two years to reach a market capitalisation of US$3 trillion after first hitting US$2 trillion in June 2024. Notably, that’s faster than the more than six years between that milestone and when it first hit US$1 trillion in late 2018.
Amazon Joins $3 Trillion Club As AI, Cloud Businesses Fuel Rally
