Artificial intelligence helped Microsoft achieve an incredible goal: $3 trillion in capitalization
Microsoft Corporation on Tuesday, January 24, reached a historic market valuation of $3 trillion, reflecting market optimism about artificial intelligence.
This was reported by Bloomberg
The shares rose by 1.3% to $403.95, bringing the market capitalization to $3 trillion. Microsoft is now in second place after Apple, which has a capitalization of $3.02 trillion.
Much of the growth reflects investor enthusiasm for artificial intelligence and its potential to accelerate profit and revenue growth. Microsoft, through its partnership with OpenAI Inc. is considered one of the biggest beneficiaries of AI.
The demand for AI services, along with the cloud computing to support them, is projected to drive Microsoft’s long-term growth trends. According to Bloomberg Intelligence, revenue is expected to grow by almost 15% in fiscal 2024, which is faster than the tech sector as a whole.
The growth has made Microsoft shares one of the most popular stocks on Wall Street. More than 90% of analysts tracked by Bloomberg recommend buying the company’s shares, and the average target price of analysts indicates an increase of about 7% from current levels.
Microsoft has released Copilot Pro, a monthly subscription for advanced users that provides access to the latest version of ChatGPT, as well as Copilot in Microsoft 365 apps and new features. It costs $20 per month per user.
