Amazon crosses $2 trillion in stock market value for the first time

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An Amazon Prime truck is seen on April 5, 2024, in Portland, Ore. Amazon hits a stock market valuation of $2 trillion for the first time on Wednesday, June 26, 2024.Credit: AP Photo/Jenny Kane, File

Amazon.com Inc. surpassed $2 trillion in market value for the first time in afternoon trading on Wednesday.

The push higher for Amazon’s stock market valuation comes a little more than a week after Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia’s chips are used to power many AI application and its valuation has soared as a result.

Amazon has also been making big investments in AI as global interest has grown in the technology. Most of the company’s focus has been on business-focused products, including AI models and a chatbot called Q, which Amazon makes available to businesses that use its cloud computing unit AWS.

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In April, Amazon CEO Andy Jassy said that AI capabilities have reaccelerated AWS’ growth and that it was on pace for $100 billion in annual revenue. The unit had slowed down in growth last year as companies cut down on costs amid high inflation.

The tech giant has also invested $4 billion in the San Francisco-based AI company Anthropic to develop so-called foundation models that underpin the generative AI systems. Amazon also makes and designs its own AI chips.

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