Stocks rally after President Donald Trump says he will restart talks with Iran.

JPMorgan raised its Amazon stock target after AWS growth accelerated, but rising AI spending and negative free cash flow remain central risks

Amazon shares jump as AWS revenue and margins accelerate faster than rising AI capex, signaling stronger cloud demand and improving returns on Amazon’s heavy investments.

Hyperscaler stocks rose on Monday as positive earnings results from Microsoft ( MSFT) and Amazon ( AMZN) last week buoyed investor confidence in the artificial intelligence leaders. Microsoft and Amazon climbed more than 5%, while Oracle ( ORCL) jumped 6%, Meta ( META) rose more than 7%, and Google ( GOOG, GOOGL) was up more than 5%.

Revenue for the quarter reached $201 billion, above expectations of $197 billion, and up 20% on the year.

Amazon's market value crossed the $3 trillion mark for the first time on Monday after investors rewarded the company for a stronger-than-expected earnings report that reinforced the view that artificial intelligence spending is beginning to generate meaningful returns through its cloud computing business.

Amazon.com Inc surpassed US$3 trillion in market value for the first time, becoming only the fifth company to ever reach the milestone.