Amazon hits $2 trillion market value thanks to AI enthusiasm and interest rate cut bets

Amazon’s market value crossed the $2 trillion mark for the first time on Wednesday as optimism about artificial intelligence and possible interest rate cuts this year boosted demand for technology-related stocks.

The stock rose 3.4 percent to $192.70, making the e-commerce giant the fifth company in the $2 trillion club after technology giants Microsoft, Apple, Nvidia and Alphabet.

US stock indices have posted strong gains this year due to continued enthusiasm for artificial intelligence, optimism about the resilience of the US economy and a possible interest rate cut by the US Federal Reserve.

On Wall Street, stocks traded near record levels, driven primarily by megacap stocks such as 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 index in February, have risen more than 26 percent this year.

After moving up one spot, Nvidia became the fifth-largest U.S. company by market value in February.

Amazon Web Services is the world’s largest provider of cloud services. After a decline last year, growth at the Amazon subsidiary has returned thanks to the increasing use of AI technologies.

The company has also invested in AI startup Anthropic and robotics company Figure to capitalize on the AI ​​boom.

Late last year, Amazon introduced a new generation of customized chips for use in data centers, targeting machine learning and generative artificial intelligence applications.