SynopsisAmazon shares reached a new high, briefly surpassing $3 trillion in market value. This surge followed a strong earnings report and increased investor confidence in artificial intelligence. The company's cloud services showed significant growth, exceeding expectations and boosting its valuation. Amazon anticipates substantial capital expenditures to meet future artificial intelligence demand. Other tech giants like Apple and Microsoft also saw their market values increase.APAmazon joins tech giants Apple, Microsoft, Alphabet and Nvidia as it recorded a market value of $3 trillion for the first time.Amazon shares soared to a fresh lifetime high on Monday, briefly pushing its market cap above the $3 trillion mark for the first time ever after the company’s better-than-expected earnings report last week boosted investor sentiment on the back of strong AI demand.Shares of Amazon jumped more than 4% on Monday, recording its best-ever day since early May this year. This came after the company delivered its strongest cloud growth in over four years and raised its annual capital spending forecast.Which other companies belong to the $3 trillion m-cap club?Tech giants Apple, Microsoft, Alphabet and Nvidia are the other companies that have recorded a market value of $3 trillion. Nvidia is currently the world's biggest company with a market capitalization close to $5 trillion. Amazon, founded by Jeff Bezos back in 1994, took a little over two years to add another trillion dollars to its market value after hitting a $2 trillion valuation for the first time in June 2024.Amazon now estimates its capital expenditures to hit $220 billion this year, up from $200 billion that it had projected in February, with CEO Andy Jassy noting that memory prices linked to the AU buildout are continuing to rise. Its revenue of around $201 billion beat analysts estimates of near $196 billion, as per a CNBC report.What Amazon CEO said about AI demand“But even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027 too…In fact, the demand we already have for 2028 is striking,” Jassy said said during a conference call with investors.Amazon Web Services (AWS) posted a revenue of $42.2 billion, flying past StreetAccount expectations of $40.54 billion, CNBC reported. Notably, this comes amid an overall caution over artificial intelligence.Also Read | Explained: Why Dow Jones closed at lifetime high despite caution over AI frenzyThe AI seesawSince last year, global stock markets saw an increasing frenzy around AI, with hyperscalers hiking their investments in the technology. The increased optimism sparked a sharp rally in the AI stocks, before things began to go down. Analysts soon began sounding the alarm over the massive AI spending and rising debt of the tech giants, questioning if they will actually bear fruit in the future. The worries sparked a sharp selloff in the tech stocks.South Korea’s Kospi, which was seen as the face of the AI frenzy, massively crashed as a result. However, the latest round of strong earnings by Wall Street’s tech giants and positive commentary around AI demand may have relieved some concerns.Shares of other hyperscalers also jumped on Monday. Microsoft shares rose 4%, Meta Platforms rallied 6% while Alphabet and Oracle shares rose 4-5%. Microsoft last week said that it expects to remain cash-generative through the fiscal 2027, and forecast capital spending below Wall Street estimates, helping drive its biggest one-day share gain since 2008.Also Read | Peter Lynch does not like the AI trade; here's why he says 'Know what you own'(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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