Amazon becomes the 5th U.S. company to reach $2 trillion in stock market value

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Amazon's stock has gained 52% in the past 12 months, partly driven by enthusiasm for the company's investments in artificial intelligence.

NEW YORK — Amazon joined the exclusive $2 trillion club Wednesday after Wall Street investors pushed the value of the e-commerce giant's stock past that threshold.

Amazon now joins Google's parent Alphabet, software behemoth Microsoft, iPhone maker Apple and chip maker Nvidia among companies with valuations of at least $2 trillion.Last week, Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia's chips are used to power many AI applications and its valuation has soared as a result.

“A big part of the valuation boost has been cloud and AI,” said Wedbush tech analyst Dan Ives. “Amazon is going to be a major player in the AI revolution.” Amazon has also invested $4 billion in the San Francisco-based AI company Anthropic to develop so-called foundation models that underpin generative AI systems. In addition, Amazon makes and designs its own AI chips.Outside of its cloud business, Amazon has cut costs significantly since late 2022, laying off more than 27,000 corporate employees across several divisions.

 

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Amazon becomes the 5th U.S. company to reach $2 trillion in stock market valueAmazon's stock has gained 52% in the past 12 months, partly driven by enthusiasm for the company's investments in artificial intelligence.
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