06/28/2024 – 1:54
Amazon’s market value surpassed the $2 billion mark for the first time, as optimism around artificial intelligence and potential interest rate cuts this year boosted demand for technology-related stocks.
Shares closed higher at a record $193.61, making the e-commerce giant the fifth company to join the $2 trillion club, following tech giants Microsoft, Apple, Nvidia and Alphabet.
US stock indexes have posted robust gains this year due to relentless enthusiasm around AI, optimism around the resilience of the US economy and potential interest rate easing by the Federal Reserve.
Wall Street was trading near record levels, driven largely by mega-cap stocks like Nvidia and Amazon, whose future cash flows are expected to benefit from lower interest rates.
Amazon shares, which were added to the blue-chip Dow Jones Industrial Average in February, are up 27% this year.
The company became the fifth-largest U.S. company by market value in February after Nvidia moved up one spot.
Amazon Web Services is the world’s largest cloud services provider, and the Amazon unit’s growth has returned after a decline last year, thanks to the growing adoption of AI technologies.
The company has also invested in AI startup Anthropic and robotics company Figure in an attempt to capitalize on the AI boom.
Late last year, Amazon unveiled a new generation of custom chips used in data centers, targeting applications for machine learning training and generative artificial intelligence.
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