Amazon joins $3 trillion club as AI, cloud growth fuel stock rally

The stock climbed 5.5% to a record $286.20, extending its year-to-date gain to more than 23%.

Shares of the Seattle-based e-commerce and cloud-computing giant jumped 15% on Friday after posting its strongest cloud growth in more than four years and lifting its annual capital-spending forecast.

Among the six “Magnificent Seven” companies that have reported so far, only Amazon and Microsoft have convinced investors that their AI investments are paying off. Tesla, Alphabet and Meta, meanwhile, faced a backlash after their heavy spending weighed on free cash flow last quarter.

Like other Wall Street tech giants, Amazon has invested billions of dollars in expanding its AI infrastructure. In April, it disclosed a new investment in Anthropic, following an earlier pledge to invest up to $50 billion in OpenAI.

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Founded by Jeff Bezos in 1994, Amazon added another $1 trillion to its market value in just over two years after first reaching a $2 trillion valuation in June 2024.
Apple, Microsoft, Alphabet, and Nvidia are other companies that have reached a market value of $3 trillion in the past. Nvidia is currently the world’s largest company by market capitalisation, at close to $5 trillion.