Amazon’s Market Surge and AI Investments Drive Stock to New Heights
Amazon (AMZN) shares surged 9% this week, adding $300 billion to its market capitalization. The rally follows strong earnings, highlighted by the fastest quarterly growth in Amazon Web Services since 2022, and a landmark $38 billion cloud partnership with OpenAI. Despite a broader tech slump, AMZN hit a new all-time high before a minor correction.
The company's strategic AI investments, including its OpenAI deal, position it as a key player in the sector. AWS will supply OpenAI with cutting-edge infrastructure, including Amazon EC2 UltraServers and access to hundreds of thousands of Nvidia GPUs. This collaboration underscores Amazon's commitment to scaling AI workloads, fueling investor optimism.
While Amazon's 12% growth trails Nvidia and Microsoft, its steady upward trajectory since April 2025 reflects resilience amid market volatility. The OpenAI agreement alone spurred a 2% stock bump, signaling confidence in Amazon's cloud dominance and AI roadmap.