Microsoft Corporation has reached a new milestone as its shares closed at a record high on Thursday, propelling the technology giant’s market capitalization to an unprecedented $2.59 trillion. This surge in market optimism can be attributed to the promising prospects of artificial intelligence (AI), an area where Microsoft is seen as a frontrunner in the software industry due to its substantial investment in OpenAI, the San Francisco-based startup renowned for its widely popular chatbot, ChatGPT.
In a bid to challenge the dominance of Alphabet Inc’s Google, Microsoft recently embarked on a rollout of AI upgrades, including ChatGPT, to its Azure cloud services and search engine Bing. By integrating AI capabilities into its services, Microsoft aims to leverage the power of AI to enhance user experiences and offer innovative solutions.
The positive market sentiment towards Microsoft was evident as its shares closed up 3.2% at $348.10 per share on Thursday. This remarkable surge in stock price reflects the strong performance of the company, which has seen its shares gain more than 45% since the beginning of the year. Microsoft had previously achieved a record close of $343.11 on November 19, 2021, and an intraday high of $349.67 on November 22, 2021.
Microsoft’s success is not the only notable achievement in the tech industry. Apple Inc also reached a record high close of $186.01 per share on Thursday, while graphics chipmaker Nvidia set a fresh intraday record of $432.89.
Analysts at JPMorgan recently raised their price target on Microsoft’s stock, citing the increasing demand for the company’s products driven by AI technologies. Out of the 53 analysts covering Microsoft, 44 have recommended buying the shares, with the median price target at $340, according to Refinitiv data.
In a note to clients, JPMorgan analysts expressed their positive outlook on generative AI and highlighted its potential to drive a resurgence of confidence in key software franchises. Microsoft’s strategic focus on AI is expected to fuel innovation and reinforce its position as a leading player in the industry.
As Microsoft continues to harness the potential of AI and invest in cutting-edge technologies, the company is poised for further growth and success. Its record-breaking market valuation is a testament to the confidence placed in Microsoft’s ability to drive innovation, shape the future of AI, and deliver exceptional products and services to its customers worldwide.
