Microsoft Reaches $3 Trillion, Strengthening AI Rally
In the most recent illustration of how confidence surrounding artificial intelligence has propelled a seemingly inexorable advance in the software giant, Microsoft Corp. hit a historic $3 trillion market capitalization on Wednesday.
With a 1.3% gain to $403.95, the stock’s market value reached $3 trillion. Crossing this barrier solidifies Microsoft’s place among the biggest publicly traded companies. Its valuation is momentarily above that of Apple Inc., which last year became the first business to reach $3 trillion, but it later fell behind the producer of the iPhone once again, and the two have been swapping places ever since.
The Redmond, Washington-based business is among the renowned «Magnificent 7» that propelled the market’s 57% increase over 2023. This year has seen the advance continue, rising 7.4%, more than the Nasdaq 100 Index’s 4.6% gain. The percentage of Microsoft in the S&P 500 Index is 7.3%.
Investor excitement in AI and its potential to boost sales and profitability growth accounts for a large portion of the gain. Microsoft is viewed as one of the main winners from AI thanks to its collaboration with OpenAI Inc. Customers can now access services assisted by AI.
Because of its rapid rise, Microsoft is now one of the most well-liked stocks on Wall Street. Over 90% of the analysts that Bloomberg tracks advise purchasing shares, and the average analyst price objective indicates a 7% increase from the present price.
