Amazon.com Inc. soared to new heights as its market value crossed the $2 trillion mark for the first time ever. The surge in value was fueled by a rally driven by artificial intelligence, propelling the tech giant further into uncharted territory.
Shares of Amazon climbed as much as 3.6% on Wednesday, reaching $193.04 and pushing the market valuation beyond $2 trillion. This milestone places the company in the rarefied company of only a few peers who have achieved this significant market capitalization. Other tech giants like Alphabet Inc., Nvidia Corp., Microsoft Corp., and Apple Inc. have also seen their market values surpass the $2 trillion mark.
The trajectory of Amazon’s shares has been on a rollercoaster ride since the release of its first-quarter earnings. The cloud unit’s robust sales growth in the past year has helped drive the stock past its previous all-time high set in April. A strong rally in June has led to a 27% gain in the stock’s value so far this year.
Over the last year, Amazon has benefited from a strategic focus on cost-cutting and business restructuring to leverage the AI frenzy. Moreover, its Amazon Web Services business has shown signs of resurgent growth, instilling confidence in investors.
Dan Romanoff, an analyst at Morningstar Investment Service, notes that part of Amazon’s recent stock success can be attributed to the company being oversold at the end of 2022.
As Amazon continues to ride the AI wave and strengthen its position in the market, investors are keeping a close eye on its performance in the ever-evolving tech landscape.
