Amazon joins Apple, Microsoft and Nvidia as one of the most valuable tech companies

Amazon joins Apple, Microsoft and Nvidia as one of the most valuable tech companies

Amazon now has a market capitalization of 2 trillion dollars (about 1.87 trillion euros). This puts it in the same category of extremely valuable tech companies as Google’s parent company Alphabet, Microsoft, Apple, and the currently most valuable company in the world: Nvidia.

The main reason for Amazon’s high stock market value is the push the tech giant is making in the field of AI, more specifically, GenAI. Not by developing much of that itself, but rather by offering backend products that allow developers to choose from various LLMs and incorporate them into their own GenAI solutions. Consider Amazon Bedrock as a good example.

AWS becoming increasingly interesting

In addition, Amazon is becoming increasingly appealing to investors because of renewed interest in the operations of Amazon subsidiary and public cloud provider AWS. This entity recently announced a series of new data centers to meet the growing demand for GenAI capacity.

Among other developments, the public cloud giant recently announced that it is spending 15.7 billion euros on building a new data center in the Spanish region of Aragon. The AWS data center should create about 17,500 full-time jobs in this region.

The Spanish region has become interesting for tech companies. Microsoft also recently invested heavily in building new data centers there.

Staff laid off to cut costs

Other reasons Amazon is gaining interest and driving up its corporate value include its significant cost reductions. For example, many staff are being laid off to end the overcapacity that arose after thousands of employees were hired during the covid pandemic. Lower costs mean the tech giant is also more financially stable, in the eyes of investors at least.

Tech companies are investor darlings

Tech companies have been investor darlings for some time because of the high demand for (Gen)AI solutions and applications. This high demand resulted in Nvidia, the main supplier of the GPUs needed for AI workloads, recently passing Microsoft as the world’s most valuable company.

Also read: Nvidia overtakes Microsoft to become the world’s most valuable company