Proactive Investors - Amazon.com Inc (NASDAQ:AMZN) shares reached a record high of $219.83 on Wednesday morning, driven by the company's expanding artificial intelligence (AI) capabilities and strategic partnerships in the semiconductor industry.
The e-commerce and cloud computing giant's stock surged as investors responded positively to announcements made at the company's annual AWS re:Invent conference.
Earlier this week Amazon Web Services (AWS) revealed an expanded relationship with chipmaker Marvell Technology (NASDAQ:MRVL.O) for custom silicon, including the next generation of AWS Trainium chips.
Bank of America (NYSE:BAC) analysts noted that the partnership could help alleviate chip supply constraints long-term, potentially reducing AWS's dependence on supply-constrained NVIDIA (NASDAQ:NVDA) processors.
The expanded deal is expected to give Marvell more incentive to invest in custom chip development for AWS.
Amazon also introduced its new series of AI models called Nova, which the company claims are more cost-effective than competing offerings.
CEO Andy Jassy highlighted the integration of AI across Amazon's retail operations, improving customer service, inventory management, and shopping experiences.
The stock's performance reflects growing investor confidence in Amazon's AI strategy and its potential to drive future growth. As of the latest trading session, Amazon's market capitalization stands at approximately $2.3 trillion.
Analysts anticipate an eventful week for AWS, with several more incremental announcements expected to emerge from the re:Invent conference.