Microsoft Briefly Touches $3 Trillion Market Cap, Driven by AI Advances

Microsoft recently witnessed a significant financial milestone when its market cap briefly surpassed $3 trillion during Wednesday’s intraday trading. This spike occurred as its stock price increased by more than 1%, reaching around $404 per share. Although the stock slightly receded later in the day, closing at $401.5 per share, the event marks a critical point in the company’s valuation.

This surge comes in the wake of Apple surpassing Microsoft as the world’s most valuable public company on January 12. However, Apple has since reclaimed its leading position, closing with a market cap of around $3.01 trillion on Wednesday.

Microsoft’s stock has seen a notable increase of over 7% year to date, fueled by investor confidence in the company’s strategic investments in artificial intelligence (AI). Analysts at Citi expect Microsoft to deliver a “solid beat” in its forthcoming fiscal second-quarter earnings report, citing the company’s pioneering role in generative AI. This optimism has led to an increase in their estimates and target price for Microsoft, along with a reiterated buy rating.

Similarly, analysts at Morgan Stanley have acknowledged Microsoft’s strengthened stance on generation AI. In a recent note, they adjusted their price target from $415 to $450, citing growing confidence in Microsoft’s potential to beat consensus estimates.

The emphasis on AI investment has positioned Microsoft as a key player in the tech industry, challenging Apple for the title of the world’s most valuable public company and highlighting the sector’s ever-evolving competitive landscape.

Interested in Stocks? You can choose to explore the FXORO Global tiles.

Source: https://www.cnbc.com/2024/01/24/microsoft-3-trillion-market-cap.html