Amazon has joined the $2 trillion club

By: Trademagazin Date: 2024. 06. 27. 11:47

Amazon on Wednesday joined the small group of companies with a market value of more than $2 trillion. The e-commerce giant joins Microsoft, Apple, Nvidia and Alphabet, which owns Google, as one of the world’s most valuable companies.

Amazon’s shares closed with an increase of nearly 4% on Wednesday, with the company’s market value crossing the $2.01 trillion threshold. Shares have risen 52% over the past 12 months, fueled in part by the company’s investments in artificial intelligence and cloud services.

In recent years, Amazon has made major developments in the field of artificial intelligence, especially in the development of products for business purposes, such as AI models and the chatbot called Q, which are made available to AWS (Amazon Web Services) users. According to Wedbush technology analyst Dan Ives, advances in AI and cloud technology are largely responsible for the valuation increase.

Amazon CEO Andy Jassy recently stated that AI capabilities have significantly accelerated the growth of AWS, resulting in $100 billion in annual revenue. Amazon invested another $4 billion in Anthropic AI, a company that develops generative AI systems. The company also manufactures and designs its own AI chips.