On Wednesday, January 24, Microsoft achieved a market capitalization of \(3 trillion, consolidating its position as one of the largest publicly traded stocks. Bloomberg reported that the tech behemoth’s shares climbed by 1.6% to reach \)405.13 on the same day. Microsoft has now surpassed Apple in market valuation, despite Apple being the initial company to hit the \(3 trillion mark on January 3, 2022, at the onset of the trading year, with a market value of approximately \)2.5 trillion.
The milestone of Microsoft reaching the $3 trillion mark not only highlights its accomplishments but also mirrors investors’ growing confidence in artificial intelligence (AI). The partnership between Microsoft and OpenAI has been instrumental in providing AI-driven services to its clientele. Microsoft’s future expansion is anticipated to be steered by the rising demand for AI services and cloud computing. Analysts foresee a 15% revenue surge in Microsoft’s fiscal year 2024, outperforming the tech sector average. The stock of the company is highly sought after on Wall Street due to the market’s fervor for AI and its capacity to expedite earnings and profit growth. Analysts, as monitored by Bloomberg, suggest purchasing shares, with an average price target signaling a 7% upsurge from current levels.
In a strategic maneuver, Microsoft disclosed in May its intentions to embed AI functionalities throughout the entire Windows 11 system, encompassing its core software offerings. Windows 11 emerged as the trailblazing PC software to introduce extensive AI support across its array of consumer and enterprise products with the introduction of Windows Copilot. Microsoft rolled out its Microsoft 365 Copilot AI for Office application for business users in November, subsequent to the debut of a professional version in September.
As per a CNBC report citing research by Piper Sandler analysts Brent Bracelin and Hannah Rudoff, Microsoft could potentially generate over \(10 billion in annualized revenue by 2026 through the feature, priced at \)30 per user per month.
