Bengaluru, India – Amazon.com Inc has achieved a new milestone by reaching a market value of $2 trillion for the first time on Wednesday. This makes Amazon the fifth U.S. company to achieve such a feat, joining the elite club that includes Microsoft Corp, Apple Inc, Nvidia Corp, and Alphabet. The significant increase in value was attributed to the growing optimism surrounding artificial intelligence and discussions of potential interest rate cuts later this year, which have fueled demand for technology-related stocks.

The stock of Amazon surged by 3.4% to $192.70, pushing the e-commerce giant’s market value beyond $2 trillion. The optimism surrounding AI prospects and the expectations of interest rate adjustments have played a crucial role in boosting stock indexes in the United States this year. Tech giants like Nvidia and Amazon have been especially influential in driving Wall Street towards record levels.

Since being added to the Dow Jones Industrial Average index in February, Amazon’s shares have risen by over 26% this year. The company’s standing in terms of market value climbed to the fifth position in February, following Nvidia’s upward trajectory. Notably, Amazon Web Services ranks as the largest provider of cloud services worldwide, and its growth has rebounded after a recent downturn due to the increased adoption of AI technologies.

In its efforts to capitalize on the flourishing AI landscape, Amazon has made strategic investments in AI startup Anthropic and robotics company Figure. With the unveiling of new custom-designed chips for data centers late last year, geared towards machine-learning training and generative artificial intelligence applications, Amazon is clearly positioning itself to dominate in the AI space. The company’s future cash flows are anticipated to benefit from lower interest rates, further solidifying its position among technology heavyweights in the market.

Overall, Amazon’s ascent to a $2 trillion market value highlights the positive sentiment surrounding technology stocks and the significant role that AI is playing in shaping the future of the industry. As the company continues to make strategic investments and innovations in AI and cloud computing, it is poised to maintain its position as a key player in the rapidly evolving tech landscape.