On Wednesday, Amazon surpassed a significant milestone as its stock value soared past $2 trillion. The e-commerce giant’s shares rose nearly 4% in a single day, giving the company a valuation of $2.01 trillion. This increase was driven partly by investor excitement over Amazon’s investment in artificial intelligence technologies.
With this achievement, Amazon joins an elite group of companies with valuations exceeding $2 trillion, including Google’s parent company Alphabet, Microsoft, Apple, and Nvidia. Notably, Nvidia recently hit a milestone of $3 trillion in valuation, fueled by the use of its chips in AI applications.
Amazon has been actively investing in AI technologies, especially within its enterprise-focused offerings like AI models and the Q chatbot available through its AWS cloud computing unit. According to technology analyst Dan Ives, Amazon’s focus on cloud and artificial intelligence is a key driver behind its valuation growth, positioning the company as a major player in the AI revolution.
Amazon CEO Andy Jassy emphasized the role of AI in driving growth within the AWS segment, with projections of reaching $100 billion in annual revenue. Additionally, Amazon’s investment in AI company Anthropic and the development of core AI models showcase its commitment to advancing AI technologies.
Despite challenges such as cost-cutting measures and external factors like the FTC’s antitrust lawsuit, Amazon’s revenue and earnings for the first quarter of the year reflected growth across its various business segments. This positive performance, coupled with investor confidence in the company’s future prospects, has contributed to Amazon’s impressive valuation milestone.
Overall, Amazon’s foray into artificial intelligence, coupled with its diverse business portfolio spanning from cloud services to retail and advertising, has positioned the company for continued growth and success in the evolving tech landscape. As it solidifies its presence in the AI market and continues to innovate, Amazon is likely to remain a key player in shaping the future of technology and commerce.
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https://business.inquirer.net/465807/amazon-joins-exclusive-club-crossing-2-trillion-in-stock-market-value/amp