For the first time, Amazon surpasses a $2 trillion market capitalization.

• Amazon crossed $2 trillion in market cap during intraday trading on Wednesday.
• Nvidia, Apple, Amazon, Microsoft, and now the company have all surpassed a $2 trillion market capitalization, making them tech heavyweights.

On Wednesday, the company's market cap surpassed $2 trillion for the first time as shares climbed more than 3% in intraday trading.

Amazon has joined the ranks of companies worth $2 trillion or more, including Microsoft, Apple, and Google, as investors continue to pour money into tech stocks amidst the hype surrounding generative artificial intelligence. Nvidia, which produces graphics processors for AI-powered servers, has experienced a significant increase in market value, rising from $2 trillion to $3 trillion in just over three months.

This year, Amazon's shares have increased by approximately 26%, while the tech-heavy sector has risen by roughly 18%.

The company's Amazon Web Services business is recovering from a recent slowdown, as reported in its first-quarter earnings in April. AWS executives discussed how the surge in demand for generative AI services can benefit the company.

Amazon's recent cost-cutting initiatives have been met with approval from investors, who have praised the company's efforts to control spending. Andy Jassy, Amazon's CEO, has been working to reduce expenses for several years, including through layoffs that have affected over 27,000 employees.

In 2020, Amazon's market cap hit $1 trillion for the second time in its history, four years after it first crossed the $2 trillion milestone.