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Amazon hits $2 trillion in valuation on AI fervor

Jun 28, 2024 - internetretailing.com.au
Amazon.com Inc reached a market value of $2 trillion for the first time, driven by optimism around artificial intelligence and potential interest rate cuts. This milestone places Amazon in the same league as tech giants Microsoft Corp, Apple Inc, Nvidia Corp, and Alphabet. The company's stock rose 3.4% to $192.70, and its shares, which were added to the Dow Jones Industrial Average index earlier this year, have climbed over 26% this year.

Amazon Web Services, the world's largest cloud services provider, has seen a resurgence in growth due to the increasing adoption of AI technologies. Amazon has also invested in AI startup Anthropic and robotics firm Figure to capitalize on the AI boom. Last year, the company unveiled a new generation of custom-designed chips for data centers, targeting applications for machine-learning training and generative artificial intelligence.

Key takeaways:

  • Amazon.com Inc reached $2 trillion in market value for the first time, becoming the fifth US company to achieve this milestone.
  • The surge in Amazon's stock was driven by optimism around artificial intelligence and potential interest rate cuts this year.
  • Amazon Web Services is the largest cloud services provider in the world, and its growth has returned after a dip in the past year due to the increasing adoption of AI technologies.
  • Amazon has invested in AI startup Anthropic and robotics firm Figure, and has unveiled a new generation of custom-designed chips used in data centers for machine-learning training and generative artificial intelligence.
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