Amazon.com Inc. reached a market value of $2 trillion for the first time on Wednesday, becoming the fifth U.S. company to surpass this milestone. This achievement was driven by optimism surrounding artificial intelligence and potential interest rate cuts this year, which boosted demand for technology stocks. The stock climbed 3.4% to $192.70, elevating the e-commerce giant’s market value to over $2 trillion. This places Amazon alongside other tech giants such as Microsoft Corp, Apple Inc, Nvidia Corp, and Alphabet in the exclusive $2 trillion club.
U.S. stock indexes have seen significant gains this year, fueled by enthusiasm for AI, confidence in the U.S. economy’s resilience, and the possibility of interest rate cuts by the Federal Reserve. Wall Street is trading near record levels, largely driven by megacap stocks like Nvidia and Amazon, which are expected to benefit from lower interest rates. Amazon’s shares, which joined the blue-chip Dow Jones Industrial Average index in February, have risen over 26% this year. The company became the fifth-largest U.S. company by market value in February, following Nvidia’s rise in ranking.
Amazon Web Services, the world’s largest cloud services provider, has seen a resurgence in growth due to increased adoption of AI technologies. Amazon has also invested in AI startup Anthropic and robotics firm Figure to capitalize on the AI boom. Late last year, Amazon introduced a new generation of custom-designed chips for data centers, aimed at machine-learning training and generative artificial intelligence applications.
