Amazon Incorporation reached a market value of USD 2 trillion for the first time on Wednesday, placing it alongside tech giants (U.S. companies) Microsoft Corp, Apple Inc, Nvidia Corp, and Alphabet that have achieved this milestone.

This remarkable valuation was largely due to investor confidence in Amazon’s progress in artificial intelligence technology and speculation about potential interest rate cuts.

The current excitement about AI technology and optimism about the strength of the U.S. economy, as well as the possibility of interest rate reductions by the Federal Reserve, have led to significant gains in U.S. stock indexes.

The trading activity on Wall Street has reached almost unparalleled levels, largely due to significant contributions from tech industry bigwigs such as Nvidia and Amazon. These companies have played a crucial role in driving the market forward with their impressive performance.

Earlier in February Amazon Inc. was added to the blue-chip Dow Jones Industrial Average index, Amazon’s stock has surged by over 26% this year, making it the fifth-largest U.S. company by market value. 

Amazon Web Services, the leading cloud services provider, has seen a revival in its growth due to the widespread adoption of AI technologies.

Apart from its core business, Amazon has made strategic investments in the AI space by backing startups such as Anthropic and Figure, to take advantage of the ongoing AI boom.

Amazon has also introduced a new generation of custom-designed chips optimized for data centres, specifically tailored for machine-learning training and generative AI applications. These developments highlight Amazon’s strong commitment to AI innovation, positioning the company at the forefront of this transformative technology.