Amazon Joins Elite $3 Trillion Club Amid AWS Growth
Amazon has surpassed $3 trillion in market capitalization for the first time, making it the fifth company to achieve this milestone. The e-commerce giant's market value currently stands at around $3.5 trillion.
The upward rally is driven by Amazon's earnings in the second quarter of this year, which exceeded market expectations. The company's AWS (Amazon Web Services) sales increased 37% year-over-year to $42.2 billion, marking its fastest growth rate in 18 quarters.
Amazon plans to invest around $220 billion in capital expenditure this year to meet the surge in demand for artificial intelligence (AI). This investment is focused on AI data centers. AWS CEO Matt Garman stated that 'AWS' AI business has grown to $25 billion in terms of annual sales.'