By D. Maan, Jadetimes News
Amazon Surpasses $2 Trillion Market Value Amid AI Optimism and Anticipated Interest Rate Adjustments
On Wednesday, Amazon.com Inc achieved a historic milestone, reaching a market value exceeding $2 trillion. This landmark positions Amazon alongside tech giants such as Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet, marking it as the fifth U.S. company to achieve this valuation threshold. The surge in Amazon's stock by 3.4% to $192.70 reflects robust investor demand fueled by optimism surrounding artificial intelligence advancements and expectations of potential interest rate cuts.
Throughout the year, U.S. stock indexes have witnessed significant gains driven by enthusiasm for AI technologies, confidence in the resilience of the U.S. economy, and prospects of Federal Reserve interventions to lower interest rates. Wall Street's momentum, bolstered by mega cap stocks like Nvidia and Amazon, underscores the anticipated benefits to their future cash flows from reduced borrowing costs.
Amazon's inclusion in the prestigious Dow Jones Industrial Average index (.DJI) earlier in February solidified its stature, contributing to its stock's impressive year to date rise of over 26%. Amazon Web Services, the global leader in cloud services, has experienced a resurgence in growth, driven by widespread adoption of AI technologies. The company's strategic investments in AI startups like Anthropic and robotics firm Figure underscore its strategic focus on leveraging the AI revolution.
In late 2023, Amazon unveiled a new generation of custom designed chips tailored for data centers, enhancing capabilities in machine learning training and generative artificial intelligence applications.