Amazon has crossed the $3 trillion market-value mark after investors responded positively to the company’s latest financial performance and strong outlook for its cloud-computing business.

The milestone places Amazon among the world’s most valuable publicly traded companies and reflects growing investor confidence in its ability to benefit from the expansion of artificial intelligence and cloud services.

Amazon Web Services, the company’s cloud-computing division, remains a major driver of its growth.

Businesses are increasingly spending on cloud infrastructure and artificial-intelligence services, creating strong demand for the computing capacity and technology that AWS provides.

Amazon has been investing heavily in data centres and AI infrastructure to keep pace with that demand.

The company’s performance has also helped ease some investor concerns about the enormous amount of money technology companies are spending on artificial intelligence.

While AI investment has increased operating costs for major technology firms, investors are becoming more interested in whether those investments can translate into sustainable revenue and profit growth.

Amazon’s rise comes during a particularly strong period for major technology stocks. Microsoft has also recorded a significant increase in market value following its latest results, while Nvidia remains one of the world’s most valuable companies as demand for AI chips continues to grow.

Analysts say Amazon’s ability to combine e-commerce, advertising and cloud computing gives it several sources of revenue.

The company is expected to remain a major player in the technology industry as businesses continue increasing their spending on artificial intelligence and digital infrastructure.

Source: GeekWire, Reuters