Amazon officially joined the elite $2 trillion club after its stock value surged, driven by Wall Street investors. The e-commerce giant ended the day with a stock valuation of $2.01 trillion, thanks in part to a 4% increase in its shares. Over the past year, Amazon’s shares have risen by 52%, fueled by excitement surrounding its investments in artificial intelligence.
This places Amazon in the company of other tech giants such as Google parent Alphabet, Microsoft, Apple, and Nvidia, all with valuations exceeding $2 trillion. Nvidia briefly held the title of the most valuable company on Wall Street last week, reaching a valuation of $3 trillion due to the widespread use of its chips in AI applications.
Amazon has been heavily investing in AI technologies as global interest in the field continues to grow. The company’s focus has primarily been on developing AI models and services for businesses, including its AWS cloud computing unit. CEO Andy Jassy highlighted the role of AI in boosting AWS’s growth, predicting the unit could generate $100 billion in annual revenue.
In addition to internal AI investments, Amazon recently acquired AI company Anthropic for $4 billion to develop core models for generative AI systems. The company has also ventured into manufacturing its own AI chips. Beyond AI, Amazon has streamlined its operations by cutting costs and reported strong financial results for the first quarter of the year, supported by growth in AWS, retail, and advertising segments.
Despite external challenges such as the threat of antitrust action from the FTC, investor sentiment remains positive towards Amazon. The company’s focus on core business growth and emerging technologies like AI has been driving its valuation upwards. Analysts believe that Amazon’s strategic investments in AI and continued financial performance will solidify its position in the $2 trillion club for the foreseeable future.
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