Microsoft’s Market Value Hits All-Time High of USD 2.59 Trillion Thanks to AI Optimism
On Thursday, Microsoft Corp’s shares reached a new all-time high, boosted by market confidence in the potential of artificial intelligence (AI). This has resulted in the technology giant achieving a record market capitalization of $2.59 trillion.
Microsoft is seen as a leader in the adoption of AI technology in the software industry, having invested heavily in OpenAI, the San Francisco-based startup that owns the widely popular chatbot ChatGPT.
Last month, Microsoft launched a series of AI updates, including ChatGPT, to its Azure cloud services and its Bing search engine in a move that aims to challenge the dominance of Alphabet Inc’s Google.
Microsoft shares rose 3.2 percent to $348.10 a share on Thursday. The stock, which is up more than 45% year to date, hit a previous high of $343.11 on 11/19/2021. The stock’s intraday record high was $349.67 on 11/22/2021.
Also, shares of Apple Inc. hit a record high of $186.01 on Thursday, while shares of graphics chipmaker Nvidia hit a new intraday high of $432.89.
Earlier on Thursday, JPMorgan analysts raised their price target on Microsoft shares because artificial intelligence will increase demand for the company’s products. 44 of Microsoft’s 53 analysts recommend buying the stock, and the average price target is $340, according to Refinitiv data.
“We confirm our emerging outlier view on generative AI and see it continuing to boost confidence in key software franchises,” JPMorgan analysts wrote in a note to clients.
