Amazon Topples $3 Trillion Mark, Sees Path to $5 Trillion Valuation

Amazon's market value surpassed $3 trillion after strong earnings results, with its cloud computing platform, Amazon Web Services (AWS), driving growth. The company is expected to reach a $5 trillion valuation by 2029 if it continues on its current path.

AWS saw revenue grow 37% year over year in the latest quarter, marking the fifth consecutive quarter of accelerating revenue growth for the segment. This growth was fueled by Amazon's strength in artificial intelligence services and custom silicon, which provides better results for customers and improved margins.

Amazon has signed agreements with leading AI labs OpenAI and Anthropic to use its Trainium chips, providing 2 GW and up to 5 GW of Trainium and Graviton cores, respectively. These deals will continue to drive growth in AWS.

The company's retail business is also growing, with revenue increasing by roughly 16% year over year in the latest quarter, thanks to strong advertising growth and improved logistics networks.