In overnight trading (Beijing time May 28), Amazon’s stock price surged 3.9%, pushing its market capitalization above $2 trillion for the first time, officially joining Apple and Microsoft in the exclusive $2 trillion club.

Since the start of 2026, Amazon’s stock has risen 26%, significantly outperforming the Nasdaq’s 18% gain. The strong performance is driven by three core factors: steady growth in AWS cloud services, explosive demand for AI computing power, and improving profit margins in the e-commerce business.

AWS remains the cornerstone of Amazon’s profitability, benefiting from sustained enterprise demand for cloud infrastructure and AI-related computing resources. As businesses accelerate digital transformation and AI adoption, AWS’s revenue growth and margins have remained resilient.

In e-commerce, Amazon has focused on cost optimization and operational efficiency, leading to improved profitability despite intense competition. The company’s discount store initiative, aimed at countering rivals like Temu and Shein, is expected to drive further revenue growth.

Market analysts believe the long-term prospects for AI and cloud computing will support continued valuation expansion for Amazon. The “winner-takes-all” dynamic among U.S. tech giants is expected to persist, with companies that control critical AI infrastructure and cloud platforms maintaining competitive advantages.

Investors will continue to monitor Amazon’s cloud revenue growth, AI product pipeline, and e-commerce margin trends to assess the sustainability of its growth trajectory.