Amazon shares rise by over 3%, market value reaches $2 trillion for the first time

Amazon.com Inc. has reached a market valuation of $2 trillion for the first time after an artificial intelligence-fueled boom pushed the technology giant even deeper into record territory.

Shares rose as much as 3.6 percent to $193.04 on Wednesday, pushing its market value above $2 trillion. The company is now a member of an elite club of a handful of rivals that have surpassed the key market capitalization. Alphabet Inc. crossed the $2 trillion threshold in late April, while price gains pushed the market values ​​of Nvidia Corp., Microsoft Corp. and Apple Inc. above $3 trillion.

Amazon shares have been up and down since the release of first-quarter results, when the cloud division posted its strongest revenue growth in a year, helping to push the stock back above the all-time high reached in April. The stock rebounded in June, erasing losses from late May and has gained about 27 percent so far this year.

Shares of the mega-cap technology company have gained value over the past year as the company cut costs and restructured its business to better capitalize on the AI ​​boom. In addition, its key Amazon Web Services business has shown signs of accelerating growth again, which is a big reason for hope for investors.

“Part of Amazon’s strong stock performance over the past six to nine months was due to the stock being oversold at the end of 2022,” said Dan Romanoff, an analyst at Morningstar Investment Service.