Amazon’s market value surpassed the $2 trillion mark for the primary time on Wednesday as optimism around artificial intelligence and potential rate of interest cuts this 12 months drove demand for technology-related stocks.
The stock closed up nearly 4% at a record $193.61, giving the e-commerce giant the fifth company to affix the $2 trillion club, following tech behemoths Microsoft, Apple, Nvidia and Alphabet.
US stock indexes have notched robust gains this 12 months on relentless enthusiasm around AI, optimism around resilience within the US economy and potential easing of rates of interest from the Federal Reserve.
Wall Street was trading near record levels, largely powered by megacap stocks reminiscent of Nvidia and Amazon, whose future money flows stand to learn from lower rates of interest.
Shares of Amazon, which were added to the blue-chip Dow Jones Industrial Average index in February, have climbed 27% this 12 months.
The corporate became the fifth biggest US company by market value in February after Nvidia went up a spot.
Amazon Web Services is the most important cloud services provider on this planet, and growth on the Amazon unit has returned after a dip previously 12 months, because of surging adoption of AI technologies.
The corporate has also invested in AI startup Anthropic and robotics firm Figure because it looks to capitalize on the AI boom.
Late last 12 months, Amazon unveiled a recent generation of custom-designed chips utilized in data centers, targeting applications for machine-learning training and generative artificial intelligence.