Amazon quickly emerges as Nasdaq's best-performing company.
Amazon was the biggest gainer on the Nasdaq 100 that day, with 73.3 million shares traded, making it the most active stock. This was the largest gain since April 2025, as Amazon's earnings and outlook far exceeded market expectations.
Following the earnings announcement, major investment banks raised their target stock prices for Amazon. Goldman Sachs and JP Morgan predicted that Amazon's cloud business growth and expanded investment in AI would significantly contribute to improving profitability in the future.
A Wall Street analyst analyzed, "Amazon's AWS (Amazon Web Services) division is growing faster than expected, and its e-commerce division is also showing solid performance," and "in particular, investments related to AI will lead to improved profitability in the future."
Nasdaq maintains gains on positive news from Amazon and Apple
Amazon's strong performance significantly improved investor sentiment toward the entire technology sector. The Nasdaq, which had recently experienced significant volatility, closed at 23,801.75, up 0.9%. This marked a rebound from its steepest decline in three weeks.
The Nasdaq has extended its gains for a third straight week, fueled by positive outlooks for Amazon and Apple, and is now on track for a sixth consecutive month of gains. This marks the longest streak of monthly gains since 2021.
Market analysts assessed that "the positive performance of Amazon and Apple has eased recent market anxiety and restored confidence in the technology sector." In particular, the strength of large-cap technology stocks is driving the Nasdaq index's rebound.
Other major Nasdaq gainers
In addition to Amazon, Lam Research (LRCX) and Western Digital (WDC) also showed gains. Both companies recently received strong buy signals after upward revisions to their earnings forecasts.
Western Digital, in particular, is attracting increasing investor interest due to the recovery of the memory market and growing demand for AI-related products. Lam Research is also expected to see improved performance, fueled by increased demand for semiconductor equipment.
The Background and Significance of Amazon's Rising Stock Price
Amazon's surge in stock price is significant amidst recent market volatility. Amid growing uncertainty over US economic indicators and interest rate policy, Amazon's strong performance has helped restore confidence in the technology sector.
In particular, Amazon's AWS cloud business is growing faster than expected, and its expanded investment in AI is being positively evaluated. This is brightening the outlook not only for Amazon but also for other cloud and AI-related companies, such as Microsoft and Google.
A U.S. stock market expert predicted, "Amazon's performance is evidence that AI-related investments and cloud businesses can drive corporate growth," adding, "This will improve investor sentiment toward technology stocks overall."
Amazon's strong performance on the Nasdaq market has played a significant role in stabilizing the recently volatile market sentiment, and experts predict that the upward momentum in the technology sector will continue going forward.
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