Microsoft Achieves Record Valuation of $2.6 Trillion Driven by AI Potential
In Brief
Microsoft shares closed at a new record high of $348.10, driven by market optimism surrounding AI prospects.
The stock has shown a 3.2% increase and a year-to-date growth exceeding 45%, surpassing previous records.
Microsoft has made significant investments in OpenAI, positioning itself as a leader in AI adoption in the software industry.
Microsoft Corp. shares closed at a new record high of $348.10 on Thursday, buoyed by market optimism about the prospects of AI. The tech giant’s market capitalization has reached a record $2.59 trillion.
On Thursday, Microsoft’s stock exhibited a 3.2% increase, closing at $348.10 per share. With a year-to-date growth surpassing 45%, the stock’s previous record closing price of $343.11 on November 19, 2021.
According to Reuters, JPMorgan analysts have raised Microsoft’s stock price target on the back of increased demand for the company’s AI-driven products. From the 53 analysts covering Microsoft, 44 recommend acquiring the shares, with a median price target of $340.
Microsoft is considered a leader in the software industry’s adoption of AI technology due to its significant investment in OpenAI, the creator of ChatGPT. The tech company invested $10 billion in OpenAI this year and would reportedly take 75% of the AI company’s profits.
Microsoft has integrated OpenAI tools into its Bing search engine and Windows operating system. The company recently introduced several AI upgrades to its Azure cloud services and Bing.
In April, Microsoft’s CFO Amy Hood predicted a 26% to 27% year-over-year growth for Azure cloud in constant currency during the fiscal fourth quarter, with one percentage point attributed to AI services. In a recent discussion with Microsoft’s technology chief Kevin Scott, Hood stated that the upcoming AI business will be its fastest-growing $10 billion venture ever. According to CNBC, Microsoft has generated nearly $208 billion in total revenue over the past four quarters.
Meanwhile, Microsoft’s competitor Google has warned staff about using AI chatbots. The concern stems from the possibility of inadvertent data and sensitive information leakage by AI systems. The search engine giant and the creator of Bard chatbot is taking steps to ensure the responsible handling of chatbot technology.
Read more:
- McKinsey: AI to Create $4.4 Trillion in Annual Economic Impact
- The U.S. Overestimates China’s Chances in the Fight for AI Technology
- Microsoft Has Introduced Multimodal Language Model Otter for Visual Understanding Based on the Massive Instructional Visual-Text Dataset MIMIC-IT
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
