Amazon has become the latest technology company to surpass a $3 trillion market capitalisation, as investors rewarded strong earnings and growing demand for its artificial intelligence (AI) and cloud computing businesses.
Amazon’s shares rose 5.5% to a record high of $286.20, pushing the company’s market value above the $3 trillion milestone for the first time. The stock has gained more than 23% this year.
The rally followed the company’s latest quarterly earnings, which showed its fastest cloud revenue growth in more than four years. Amazon also raised its forecast for annual capital expenditure, reinforcing investor confidence in its AI strategy.
Amazon and Microsoft are the only two “Magnificent Seven” technology companies whose heavy investments in AI have been positively received by investors this earnings season. Other tech giants, including Tesla, Alphabet, and Meta, have faced market pressure as increased AI spending weighed on free cash flow.
The company has committed billions of dollars to expanding its AI infrastructure. Earlier this year, Amazon announced additional investments in AI firms, including Anthropic and OpenAI, as it seeks to strengthen its position in the rapidly growing AI market.
Founded by Jeff Bezos in 1994, Amazon reached the $3 trillion milestone just over two years after first surpassing a $2 trillion valuation in June 2024.
Amazon joins Apple, Microsoft, Alphabet, and Nvidia among the select group of companies to achieve a market capitalisation of at least $3 trillion.
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