Amazon's shares surge past $3 trillion market value on AI-driven cloud growth

Amazon has joined a select group of tech giants by crossing the $3 trillion market-cap mark, driven by a rally after reporting robust quarterly results. Shares climbed to $286.20, a 5.5% gain that lifted the company's year-to-date performance above 23%. The surge was powered by the fastest cloud revenue growth in over four years and a higher forecast for annual capital spending.

Among the "Magnificent Seven" firms reporting earnings, only Amazon and Microsoft saw their AI investments translate into higher valuations, while Tesla, Alphabet and Meta faced pressure from aggressive spending. The company continues to pour billions into AI infrastructure, recently investing in Anthropic and previously pledging up to $50 billion to OpenAI. Amazon reached the $2 trillion milestone in June 2024 and added another $1 trillion in just over two years, joining Apple, Microsoft, Alphabet and Nvidia in the $3 trillion club.