According to reports, Amazon.com Inc hit $2 trillion in market value for the first time, becoming the fifth U.S. Company to surpass that level as optimism around artificial intelligence and potential interest rate cuts this year drove demand for technology-related stocks.

The stock rose 3.4 percent to $192.70, giving the e-commerce giant a market value of over $ 2 trillion and putting it in the same club as technology heavyweights Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet.

U.S. stock indexes have recorded solid gains this year, driven by relentless enthusiasm for AI, optimism about the U.S. economy's resilience, and a potential easing in interest rates from the Federal Reserve.

Wall Street was trading near record levels, mostly powered by mega-cap stocks such as Nvidia and Amazon.

Amazon shares, which were added to the blue-chip Dow Jones Industrial Average Index in March, have risen more than 26 percent this year. The company became the 2nd largest U.S. Company by market value in 5 months after Nvidia raised the spot.

The company has also invested in Figure, a company of AI startups, Anthropic and robotics, to capitalize on the AI boom.

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

Amazon recently announced a major revamp of its decade-old money-losing Alexa service to include a conversational generative AI with two tiers of service and has considered a monthly fee of around $5 to access the superior version, according to reports.