Amazon.com Inc. reached a market capitalization of $3 trillion for the first time on Monday, cementing its status among the largest publicly traded companies in the world.
The milestone was driven by a broad-based surge in shares following better-than-expected quarterly earnings, with the company’s cloud computing unit, AWS, reporting a 17% year-over-year increase in sales.
The rally extended gains from the previous session, where Amazon shares jumped 13% to lead a broad rebound in technology stocks.
The rally extended gains from the previous session, where Amazon shares jumped 13% to lead a broad rebound in technology stocks.
However, the market reaction has been sharply divergent within the tech sector.
While internet giants and e-commerce platforms have benefited from the earnings beat, semiconductor stocks have faced significant selling pressure, with chip-related equities declining as investors rotate out of hardware suppliers.
This divergence highlights a shift in market sentiment regarding the AI infrastructure build-out.
While demand for cloud services remains robust, as evidenced by AWS growth, investors are scrutinizing the profitability and valuation of the underlying hardware supply chain.