Amazon’s market capitalisation surpassed $3 trillion for the first time on Monday, joining an exclusive group of technology giants to reach the milestone.
The achievement comes as investors reward the company for its strongest cloud computing growth in more than four years and a higher annual capital spending forecast, reinforcing confidence that its aggressive AI investments are translating into stronger financial performance.
Amazon now joins Apple, Microsoft, Alphabet and Nvidia as the only companies to have crossed the $3 trillion valuation mark, with Nvidia remaining the world’s most valuable company at nearly $5 trillion.
Amazon’s $3 trillion market capitalisation was driven by a 5.5% jump in its share price to a record high of $286.20 on Monday, according to Reuters.
Earlier, the company’s shares surged 15% on Friday following its earnings release before extending gains on Monday, taking the stock’s year-to-date advance to more than 23%.
- Amazon’s strong performance shows that its AI spending has visibly translated into revenue growth in a way that has not yet materialised for some rivals.
- The milestone came just two years after Amazon first hit a $2 trillion valuation in June 2024, making it one of the fastest trillion-dollar additions in the company’s history.
- Amazon and Microsoft are the only two of the so-called Magnificent Seven companies, out of the six that have reported earnings so far, whose AI spending has been rewarded by investors, according to Reuters.
Amazon’s cloud computing division, AWS, is the company’s primary profit engine, and the acceleration in its growth rate has been directly linked by the company to rising demand from enterprises building and deploying AI applications at scale.
