New Delhi: Amazon has become the latest tech giant to cross $3 trillion in market valuation.
The company's stocks have surged more than 5 percent to hit a record high.
The company crossed the milestone just over two years after first reaching the $2 trillion mark in June 2024.
Amazon now joins Apple, Microsoft, Alphabet and Nvidia as the only companies to have ever crossed the $3 trillion mark.
This rally follows stronger than expected second quarter earnings with investors cheering robust growth in Amazon Web Services or AWS.
Now the stock has gained more than 23% so far this year itself. The current stock price stands at USD 284.02 a piece at the time of writing this report.
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Amazon's result also lifted sentiment across the broader tech sector.
Shares of Microsoft, Meta, Alphabet and Oracle all advanced as investors grew more confident that spending billions in AI infrastructure is generating tangible returns.
And let's say the latest earnings have eased concerns that hyperscalers would slow their AI investments.
Instead, companies continue to expand spending on data centers, chips and cloud infrastructure, signaling that demand for AI computing remains strong despite rising capital expenditure.
The latest earnings season also highlights a growing divide within big tech.
While Amazon and Microsoft have strengthened investor confidence with accelerating cloud growth, companies such as Meta, Alphabet and Tesla continue to face scrutiny over rising AI-related spending and weaker free cash flows.
According to Goldman Sachs, the estimates for hyperscaler capital expenditure in 2027 have now climbed to more than $1 trillion.
That's up by over $100 billion from estimates before the earnings season.
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And let's say that the market is increasingly rewarding companies that can demonstrate clear returns on AI investments.
Suggesting that the next phase of the AI race will be driven not just by spending, but execution and profitability.
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