Amazon achieves $2 trillion valuation driven by AI innovation

By Team Startupcity  |  Thursday, 27 June 2024, 08:50 IST

Amazon achieves $2 trillion valuation driven by AI innovation
Amazon.com Inc. became the fifth US Company to surpass $2 trillion in market value. Demand for technology-related stocks was driven by optimism regarding artificial intelligence and potential interest rate cuts this year. 
The e-commerce giant now has a market value of more than $2 trillion and joins the likes of technology giants Microsoft Corp, Apple Inc., Nvidia Corp., and Alphabet with a gain of 3.4% to $192.70. 
This year, the relentless enthusiasm surrounding AI, optimism regarding the resilience of the US economy, and the potential for the Federal Reserve to ease interest rates have fueled substantial gains in US stock indexes.
Mostly driven by mega cap stocks like Nvidia and Amazon, whose future cash flows stand to benefit from lower interest rates, Wall Street was trading close to record levels. 
This year, Amazon shares have increased by more than 26% since they were included in the blue-chip Dow Jones Industrial Average index in February. 
The organization turned into the fifth greatest US organization by market esteem in February after Nvidia went up a spot. 
Amazon web services is the biggest cloud administrations supplier around the world, and development at the Amazon unit has returned after a plunge in the previous year, because of surging reception of Artificial intelligence advancements. In an effort to take advantage of the AI boom, the company has also invested in Robotics Company Figure and AI startup Anthropic. 
At the end of the previous year, Amazon unveiled a brand-new generation of custom-designed chips that are utilized in data centers. These chips are intended for use in training machine learning and generative artificial intelligence.   
 

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