New Delhi

Amazon became the fifth US company to hit $2 trillion in market value on Wednesday. This comes as investors flock to the stock on optimism around artificial intelligence and potential interest rate cuts. The stock rose 3.1 per cent to $192.1.

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Amazon joins the league of tech heavyweights such as Microsoft, Nvidia, Alphabet, and Apple.

Earlier, Nvidia's shares saw a 5 per cent increase following a three-day decline that reduced the company's market worth by $430 billion. They had lost about 13 per cent since their peak on July 18 as a result of the decline. The drop followed a rally that accelerated after a 10-for-1 stock split. The drop also prompted speculations about a potential 'bubble' that could burst sooner or later.

The value of Nvidia's stock, which briefly surpassed Apple as the most valuable company in the world last week, has increased by 152 per cent so far this year and accounts for almost 30 per cent of the S&P 500's return for the year. The index is up 14.6 per cent so far this year.

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Big tech rally is reflective of the surging AI demand, that has investors locked in a buying spree. Still, some remain sceptical of a possible 'bubble' that could burst sooner or later.