E-commerce and tech giant Amazon hit a $3 trillion market valuation for the first time Monday, marking a new milestone for the company following a rise in its shares for a second straight session after last week's strong earnings report.
Shares of the tech giant were up 5.2% at $285.75 in early trading, lifting the company's valuation to about $3.1 trillion.
Amazon posted quarterly profits of more than $62 billion thanks to huge increases in two artificial intelligence-related divisions: the AI cloud business and chips.
The company's cloud business, Amazon Web Services (AWS), posted a 37% jump in revenue to reach $42.2 billion, prompting CEO Andy Jassy last week to predict it could be a "trillion-dollar annual revenue business for us in time."
Amazon, Microsoft, Alphabet and Meta Platforms are collectively on track to pour around $700 billion into AI data centers, chips and computing infrastructure this year.
Giovanni Mazzariello, equity specialist at UniCredit, described last week's results from Amazon and other AI "hyper scalers" as "broadly reassuring."
"Taken together, rapid revenue growth, widening margins and a swelling backlog from all four hyperscalers, provide the clearest evidence that utilization and monetization are rising fast enough to absorb the growing depreciation and operating costs of the infrastructure build-out," Mazzariello said.
