Amazon’s market capitalization surpassed $3 trillion for the first time on Monday. The company is the fifth U.S. firm to reach this historic valuation. Shares rose more than 5% during the session to hit a new all-time high. The rally followed a strong second-quarter earnings report released last week.
Investor confidence in Amazon’s artificial intelligence strategy drove the surge. The Amazon Web Services (AWS) cloud division reported its fastest revenue growth in over four years. This performance eased market concerns regarding high capital expenditures for AI infrastructure. Amazon now joins Apple, Microsoft, Alphabet, and Nvidia in the $3 trillion club.