Amazon market cap crosses $3 trillion as AI, cloud growth power stock rally
Amazon's market capitalization has surpassed $3 trillion, fueled by strong quarterly earnings and investor optimism regarding its cloud-computing and AI infrastructure growth. The company joins a select group of tech giants, including Microsoft and Nvidia, that have reached this valuation milestone.
Why it matters
The rally underscores the massive capital investment in AI infrastructure and the market's focus on cloud revenue as a primary driver of tech sector growth.
Yet another technology stock has crossed the $3 trillion market cap. Amazon's market capitalisation went past the $3 trillion mark for the first time on Monday, driven by a sharp rally after the company reported strong quarterly results and reinforced investor confidence that the artificial intelligence (AI) boom is generating fresh demand for its cloud-computing business, its biggest profit driver.The stock was last trading 5.5% higher at $286.20, a record high, taking its gains for the year to more than 23%.Shares of the Seattle-headquartered e-commerce and cloud giant had surged 15% on Friday after the company reported its fastest cloud revenue growth in over four years and increased its forecast for annual capital expenditure.Among the "Magnificent Seven" technology companies that have reported earnings so far, Amazon and Microsoft are the only two whose heavy AI investments have been rewarded by investors.
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