Amazon’s market capitalisation has exceeded $3 trillion for the first time, joining an elite group of technology companies as investors continue to reward its accelerating artificial intelligence and cloud computing business.
The milestone was reached on Monday after Amazon’s shares climbed 5.5% to a record high of $286.20, according to Reuters.
The company now joins Apple, Microsoft, Alphabet and Nvidia as the only publicly traded companies to surpass the $3 trillion valuation threshold, with Nvidia remaining the world’s most valuable company at nearly $5 trillion.
Investor optimism has been fuelled by Amazon’s latest financial results, which showed its fastest cloud computing growth in more than four years alongside an increase in planned capital expenditure to support artificial intelligence infrastructure.
Amazon’s shares had already surged 15% following the release of its earnings before extending gains on Monday, lifting the stock’s year-to-date performance to more than 23%.
The company reached the milestone just two years after first crossing the $2 trillion valuation mark in June 2024, making it one of the fastest additions of another trillion dollars in market value.
Analysts have pointed to Amazon’s cloud business, Amazon Web Services (AWS), as the key driver of investor confidence.
AWS remains Amazon’s primary profit engine, with the company attributing its accelerating growth to increasing demand from businesses deploying artificial intelligence applications at scale.
According to Reuters, Amazon and Microsoft are the only two members of the “Magnificent Seven” technology companies whose substantial AI investments have so far translated into stronger financial performance that has been rewarded by investors.
