Amazon.com Inc.'s market capitalization hit $2 trillion for the first time, as an artificial intelligence-fueled stock price surge propelled the tech giant further into record territory.
The stock rose 3.9% to close at $193.61 on Wednesday, giving the company a market capitalization of more than $2 trillion. The company now joins an elite club of a small number of its peers whose market capitalizations exceed those of major companies.
Alphabet surpassed the $2 trillion market capitalization milestone in late April, while rising stock prices have helped Nvidia, Microsoft and Apple each surpass $3 trillion in market capitalization.
Amazon shares have been tumbling since the company reported first-quarter earnings in which its cloud division posted its biggest revenue increase in a year. The results helped Amazon's stock rally above the all-time high it hit in April. The stock rebounded in June, recouping losses from the end of May and is up 27% so far this year.
The tech giant's shares have risen over the past year as the company has cut costs and restructured its business to take advantage of the AI ​​boom, and its flagship business, Amazon Web Services, is showing signs of reaccelerating growth, providing plenty of optimism for investors.
“Part of Amazon's stock performance over the last six to nine months has to do with it being oversold at the end of 2022,” said Dan Romanoff, an analyst at Morningstar Investment Service.
