On Wednesday, January 24, Microsoft’s market valuation topped $3 trillion, solidifying its standing as one of the biggest publicly traded companies.
Microsoft has now switched places with the manufacturer of iPhones, despite momentarily surpassing Apple, which was the first corporation to hit the $3 trillion milestone.
On January 3, 2022, the first trading day of that year, Apple tripled its valuation in less than four years, making it the first American business to reach a $3 trillion market capitalization. Microsoft had a valuation of roughly $2.5 trillion at the time.
Microsoft’s achievement of the $3 trillion milestone not only demonstrates its performance but also the increasing optimism of investors over artificial intelligence (AI).
According to the study, the company credits its success in part to its collaboration with OpenAI, which has enabled it to offer AI-supported services to its clientele.
The report stated that Microsoft’s long-term development is expected to be driven by the demand for AI services in conjunction with cloud computing. According to data from Bloomberg Intelligence, the company’s revenue is predicted to increase by 15% in its fiscal year 2024, exceeding the growth of the whole tech sector.
The research states that Microsoft is one of the most sought-after stocks on Wall Street due to the market’s enthusiasm for AI and its potential to drive growth in earnings and revenue. More than 90% of the analysts Bloomberg tracks advise purchasing shares, and their average price objective indicates a 7% increase from the present price.
Microsoft declared in May that AI integrations will be made available for its whole Windows 11 platform, which includes the company’s most significant software offerings.
Windows 11 was the first PC platform to announce centralized AI help throughout its suite of consumer and enterprise products, with the preview of this AI integration known as Windows Copilot.
After releasing a commercial version in September, Microsoft started charging its Office app business subscribers for Microsoft 365 Copilot AI in November.
CNBC claimed at the time that the feature, which costs $30 per person per month, could bring in more than $10 billion in annualized income for the company by 2026. The story cited analysis by Piper Sandler analysts Brent Bracelin and Hannah Rudoff.