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Amazon hits $2 trillion in valuation on AI fervor, rate cut bets

Jun 27, 2024 - us.fashionnetwork.com
Amazon.com reached a market value of $2 trillion for the first time, making it the fifth U.S. company to achieve this milestone. The surge in value was driven by optimism around artificial intelligence and potential interest rate cuts, which increased demand for technology-related stocks. The company's stock rose 3.4% to $192.70, placing it in the same league as tech giants Microsoft, Apple, Nvidia, and Alphabet.

The company, which was added to the Dow Jones Industrial Average index in February, has seen its shares climb 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.

Key takeaways:

  • Amazon.com reached a market value of $2 trillion for the first time, becoming the fifth U.S. company to achieve this milestone.
  • The stock rose 3.4% to $192.70, joining the ranks of technology giants Microsoft Corp, Apple Inc, Nvidia Corp, and Alphabet.
  • Amazon Web Services is the world's largest cloud services provider, and its growth has rebounded due to the increasing adoption of AI technologies.
  • Amazon has invested in AI startup Anthropic and robotics firm Figure, and last year, it introduced a new generation of custom-designed chips used in data centers for machine-learning training and generative artificial intelligence.
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