Amazon reached a market value of $2 trillion for the first time on Wednesday, becoming the fifth U.S. company to achieve this milestone. This growth was driven by optimism around artificial intelligence and potential interest rate cuts, boosting demand for tech stocks.
The stock rose 3.4% to $192.70, placing Amazon in the elite group with Microsoft, Apple, Nvidia, and Alphabet. U.S. stock indexes have seen significant gains this year, fueled by enthusiasm for AI, economic resilience, and potential Federal Reserve rate cuts.
Amazon’s shares, which joined the Dow Jones Industrial Average in February, have climbed over 26% this year. The company, now the fifth largest by market value, benefits from Amazon Web Services’ renewed growth, driven by AI adoption.
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Additionally, Amazon has invested in AI startup Anthropic and robotics firm Figure to capitalize on the AI boom. Late last year, they introduced new custom chips for data centers, aimed at machine-learning and generative AI applications.
