Amazon’s market value surpassed the $2 trillion mark for the first time on Wednesday as optimism around artificial intelligence and potential interest rate cuts this year drove demand for technology-related stocks.

The stock closed up nearly 4% at a record $193.61, giving the e-commerce giant the fifth company to join the $2 trillion club, following tech behemoths Microsoft, Apple, Nvidiaand Alphabet.

US stock indexes have notched robust gains this year on relentless enthusiasm around AI, optimism around resilience in the US economy and potential easing of interest rates from the Federal Reserve.

Wall Street was trading near record levels, largely powered by megacap stocks such as Nvidia and Amazon, whose future cash flows stand to benefit from lower interest rates.

Shares ofAmazon, which wereaddedto the blue-chip Dow Jones Industrial Average indexin February, have climbed 27% this year.

The company became the fifth biggest US company by market value in February after Nvidia went up a spot.

Amazon Web Services is the largest cloud services provider in the world, and growth at the Amazon unit has returned after a dip in the past year, thanks to surging adoption of AI technologies.

The company has also invested in AI startup Anthropic and robotics firm Figure as it looks to capitalize on the AI boom.

Late last year, Amazon unveiled a new generation of custom-designed chips used in data centers, targeting applications for machine-learning training and generative artificial intelligence.