Amazon enters $3 trillion club as AI, cloud growth power rally

Amazon enters $3 trillion club as AI, cloud growth power rally

Mon, August 3, 2026 at 4:45 PM GMT+3 1 min read

• AMZN +4.98%

Aug 3 (Reuters) - Amazon's market value topped $3 trillion for the first time on Monday, helped by a sharp rally ‌following strong earnings and signs that the AI boom is ‌driving fresh demand for its cloud-computing services, the company's main profit engine.

Its shares ​were last up 5.5% at $286.20, hitting a record high and taking their yearly gains to over 23%.

The Seattle-based e-commerce and cloud computing giant's stock surged 15% on Friday after it delivered its strongest cloud growth ‌in more than four ⁠years and raised its annual capital spending forecast.

Amazon and Microsoft are the only two of the "Magnificent Seven" ⁠companies, out of the six that have reported so far, whose AI spending has paid off in investors' eyes. Tesla, Alphabet and Meta ​were punished ​as their massive spending plans hit ​free cash flow last quarter.

Along ‌with other tech giants on Wall Street, Amazon has been pouring billions to build out its AI infrastructure. It disclosed a new investment in Anthropic in April, which follows Amazon's announcement earlier this year that it would invest up to $50 billion in OpenAI.

It took ‌just over two years for the ​company, founded by Jeff Bezos back in ​1994, to add another ​trillion dollars to its market value after hitting a $2 ‌trillion valuation for the first ​time in June ​2024.

Apple, Microsoft, Alphabet and Nvidia are the other companies that have recorded a market value of $3 trillion in the past. Nvidia ​is currently the ‌world's biggest company with a market capitalization close to $5 trillion.

(Reporting ​by Shashwat Chauhan and Purvi Agarwal in Bengaluru; Editing ​by Devika Symnath and Shinjini Ganguli)