Amazon Hits $3 Trillion Valuation, Joining Elite Club

Shares of Amazon rose about 5% to $285.01, bringing the stock's gain for the year to more than 23%. The rally builds on momentum from last week, when shares surged 15% on Friday after the company reported quarterly results.

Amazon Web Services posted its fastest growth in more than four years, easing investor concerns over the company's massive AI infrastructure investments. Strong demand for AI services helped boost AWS revenue, while Amazon said it expects to spend about $200 billion on capital expenditures in 2026 alone.

AI workloads require significantly more computing power than traditional applications, prompting Amazon to invest heavily in expanding its infrastructure. In its annual letter to shareholders, the company said it has already secured multiple agreements to utilize the additional computing capacity being built this year and in the years ahead.

AWS has also expanded partnerships with leading AI developers, including OpenAI, Anthropic and Meta. Amazon has agreed to invest up to $25 billion in Anthropic, while Anthropic has committed to spending more than $100 billion on AWS technologies over the next decade. The companies also announced that AWS and OpenAI will co-create a Stateful Runtime Environment powered by OpenAI models, available on Amazon Bedrock for AWS customers. Amazon will invest $50 billion in OpenAI.

Amazon and Microsoft are the only two members of the 'Magnificent Seven' that have so far won investor approval for their massive AI spending. By contrast, Tesla, Alphabet and Meta faced investor concerns after their heavy AI investments weighed on free cash flow in the latest quarter. Alphabet reported negative free cash flow for the first time, while Meta's free cash flow fell 91%. Nvidia remains the world's most valuable company, with a market capitalization approaching $5 trillion.