Amazon’s market capitalisation crossed the $3 trillion threshold for the first time on Monday, as shares rose 5.5% to a record $286.20. The advance extends the stock’s year-to-date gain to more than 23% and makes the Seattle-based company the fifth to reach the milestone, alongside Nvidia, Alphabet, Microsoft and Apple.

The move was propelled by quarterly results that delivered the strongest cloud revenue growth in more than four years. Amazon Web Services posted a 37% jump in revenue to $42.2 billion, helping lift net profit to $62.6 billion. Chief Executive Andy Jassy said the cloud unit could become “a trillion-dollar annual revenue business for us in time”, while the company raised its forecast for annual capital expenditure.

Among the six members of the “Magnificent Seven” that have reported so far, only Amazon and Microsoft have persuaded investors that their heavy artificial-intelligence spending is generating returns. Tesla, Alphabet and Meta faced a backlash after their aggressive investment plans weighed on free cash flow. Amazon itself has been pouring billions into AI infrastructure, disclosing in April a fresh investment in Anthropic and an earlier pledge to invest up to $50 billion in OpenAI. It took just over two years for the company, founded by Jeff Bezos in 1994, to add another trillion dollars in market value after first reaching $2 trillion in June 2024.

Giovanni Mazzariello, equity specialist at UniCredit, described the results from Amazon and other AI “hyperscalers” as “broadly reassuring”, noting that rapid revenue growth and widening margins provide “the clearest evidence that utilisation and monetisation are rising fast enough to absorb the growing depreciation and operating costs of the infrastructure build-out”. The earnings have, for now, quieted the scepticism that weighed on the stock earlier this year, though the collective AI infrastructure spend of the hyperscalers—on track for around $700 billion this year—will continue to be tested against revenue growth.