Amazon crossed the $2 trillion market cap during intraday trading on Wednesday, joining tech giants like Nvidia, Apple, Alphabet, and Microsoft, with its shares surging 27.5% year-to-date
On Wednesday, Amazon’s market capitalization exceeded $2 trillion for the first time, as shares closed at $193.61, up 3.9%.
Amazon has achieved the milestone, joining the ranks of Apple, Alphabet, Microsoft, Nvidia, and others, all of which are valued at $2 trillion or more.
Recently, investors have been investing in technology equities as the excitement surrounding generative artificial intelligence has reached a fever pitch.
In just over three months, Nvidia’s market value has increased from $2 trillion to $3 trillion, as it manufactures graphics processors for the servers that power large AI models.
Amazon’s shares have increased by 27.5% thus far this year, while the Nasdaq, which is dominated by technology, has increased by approximately 18% during the same period.
The company’s Amazon Web Services business continued to rebound from a recent decline caused by businesses that reduced their cloud spend in April, as the company reported first-quarter earnings.
The executives of Amazon also discussed in detail how AWS can capitalize on the increase in demand for generative AI services.
The company’s recent cost-cutting initiatives have also been well-received by investors, as they have contributed to Amazon’s earnings growth in recent quarters.
Andy Jassy, the CEO of Amazon, has been engaged in a multiyear endeavor to reduce the company’s expenditures, which has resulted in the termination of over 27,000 Amazon employees.
Amazon required more than four years to surpass the $2 trillion threshold. In 2020, its market capitalization exceeded $1 trillion for the second time in its history, following its initial achievement of this milestone in 2018.