Amazon Surpasses $3 Trillion Market Cap Driven by AI-Fueled Cloud Growth

Amazon's market capitalisation has surpassed $3 trillion for the first time, driven by strong quarterly results and increasing investor confidence in its cloud-computing business. The company's stock surged 5.5% to a record high of $286.20, with gains for the year now exceeding 23%. Amazon's growth is largely attributed to its significant investments in artificial intelligence (AI), which has become a key driver of demand for its cloud services.

The Seattle-based e-commerce giant joins Microsoft as one of only two technology companies whose heavy AI investments have been rewarded by investors, unlike Tesla, Alphabet, and Meta, who saw their aggressive spending plans weigh on free cash flow during the latest quarter. Amazon's commitment to expanding its AI infrastructure includes a recent investment in Anthropic and an earlier pledge to invest up to $50 billion in OpenAI.

The AI boom has propelled global stock markets to record levels, with leading technology companies committing hundreds of billions of dollars to expand AI capabilities. However, concerns have been raised about the sustainability of this rally and the risk of a bubble forming in the tech sector.