Amazon became the latest technology stock to cross the $3 trillion market-capitalisation threshold, according to Business Today. Its market value went past the mark for the first time on Monday, with shares of the Seattle-headquartered e-commerce and cloud giant last trading 5.5% higher at $286.20 — a record high that puts the stock's year-to-date gain at more than 23%.
Cloud growth drives the rally
Business Today reported that the sharp rally followed strong quarterly results, with Amazon reinforcing investor confidence that the artificial intelligence (AI) boom is generating fresh demand for its cloud-computing business, its biggest profit driver. The stock had surged 15% on Friday after the company reported its fastest cloud revenue growth in over four years and increased its forecast for annual capital expenditure.
Rewards and pressure inside the Magnificent Seven
Among the Magnificent Seven technology companies that have reported earnings so far, Amazon and Microsoft are the only two whose heavy AI investments have been rewarded by investors.
According to Business Today, by contrast, Tesla, Alphabet and Meta came under pressure as their aggressive spending plans weighed on free cash flow during the latest quarter.
| Company | Market cap milestone | Latest market data |
|---|---|---|
| Amazon | Crossed $3 trillion for the first time on Monday | Stock +5.5% to $286.20; year-to-date +23% |
| Apple, Microsoft, Alphabet, Nvidia | Previously achieved at least $3 trillion in market cap | Nvidia approaching $5 trillion, world's most valuable company |
Billions in AI infrastructure spending
Business Today reported that Amazon has been investing billions of dollars to expand its AI infrastructure. In April, the company announced a fresh investment in Anthropic, following its earlier commitment this year to invest up to $50 billion in OpenAI. Founded by Jeff Bezos in 1994, Amazon took just over two years to add another $1 trillion to its market value after first crossing the $2 trillion milestone in June 2024.
Market context, geopolitical risk and bubble concerns
The AI boom has propelled global stock markets to record levels, with leading technology companies committing hundreds of billions of dollars to expand AI infrastructure and capabilities, according to Business Today. The strong AI-led rally has helped equities withstand the risks and uncertainty arising from the Iran conflict, supporting broader market sentiment despite geopolitical tensions. However, Business Today added that recently technology stocks globally have come under pressure, raising doubts about the sustainability of the rally and concerns of a bubble.
What the milestone means for finance executives
For CFOs, treasury directors and investors tracking capital-market conditions, the reporting from Business Today offers three concrete reference points: Amazon's stock moved to a record $286.20 on a 5.5% gain; the company raised its annual capital expenditure forecast; and among Magnificent Seven members that have reported, only Amazon and Microsoft have seen their heavy AI investments rewarded by investors. That combination shows how equity investors are currently pricing AI infrastructure spending alongside cloud revenue growth, while the same report flags that technology stocks globally have recently come under pressure. Market participants monitoring the $3 trillion club now have a clear benchmark: Amazon joined Apple, Microsoft, Alphabet and Nvidia above the threshold, while Nvidia holds the title of the world's most valuable company at a market capitalisation approaching $5 trillion.
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