Amazon's AI Push Propels Its Market Cap Beyond $2 Trillion As Stock Soars To New Heights Setting Its Sights At $3 Trillion

• Amazon has achieved a $2 trillion market capitalization, driven in part by the significant role of AI.
• Despite its significant market cap growth, Amazon's stock faces challenges at $200.

Amazon.com Inc AMZN rise to a $2 trillion market capitalization marks a historic moment, placing it alongside tech giants like Microsoft, Apple, Nvidia, and Alphabet.

This achievement highlights the growing importance of artificial intelligence in market valuation.

Amazon's stock price surged to $199 per share this week, reaching a market cap of approximately $2.29 trillion.

This record-setting figure is part of a larger upward trend in the tech sector, fueled by investor excitement for AI technologies.

The increase in their market value underscores its status as a major player in the global tech industry.

Under the leadership of founder and chairman Jeff Bezos, Amazon has continued to innovate and expand, even in a rapidly changing market.

In a strategic move to diversify its revenue streams and compete with emerging players, the company plans to launch a new discount store.

This venture will position it against fast-growing competitors like Temu and Shein by focusing on low-cost products mainly sourced from China.

Meanwhile, Temu, known for its gamified shopping experience, is moving its headquarters to Ireland, signaling its global expansion ambitions.

Despite Amazon's impressive growth, challenges remain. The stock currently faces a critical psychological resistance level at $200.

Overcoming this barrier is essential to maintaining its valuation above $2 trillion. With a 12% rise in June and a 30% increase year-to-date, market sentiment remains positive.

This momentum could push Amazon towards a $3 trillion market cap, provided it effectively navigates potential volatility and competitive pressures with its strategic foresight.

After the closing bell on Thursday, June 27, the stock closed at $197.85, trading up by 2.19%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.