Amazon shares rose about 4.5% during trading after the company’s annual shareholder letter from CEO Andy Jassy. He highlighted that the artificial intelligence segment is showing strong performance, with AI services revenue in the AWS cloud division exceeding $15 billion on an annualized basis.

An additional positive factor was the announcement of a partnership between Amazon’s pharmacy business and Eli Lilly. The companies agreed to launch same-day delivery for medications, including popular GLP-1-based drugs. This strengthened expectations for revenue growth in the healthcare segment and expansion of the company’s ecosystem.

Support for the stock also came from a decline in energy prices following reports of a ceasefire between the U.S. and Iran. This reduces Amazon’s logistics costs, which is especially important for its large-scale retail operations. Several analysts raised their price targets, highlighting the strategic importance of AI investments.

After the initial surge, the stock stabilized around $231.74, up about 4.7% for the day. Despite relatively low volatility over the past year, the current move shows that the market views the AI developments and long-term prospects positively.