Microsoft shares hit all-time closing high; nears $2.6 trillion market value
Microsoft shares hit a fresh record high Thursday, valuing the tech giant at nearly $2.6 trillion, as its early-mover advantage into AI technology looks to challenge Apple’s place as the world’s most valuable company.
The shares of Windows software maker were trading up 3.3% at $349.15 per share on Thursday. The stock, which has gained more than 45% in the year to date, reached its prior record close of $343.11 on Nov. 19 2021. The stock’s intraday record high was $349.67 on Nov. 22, 2021.
Microsoft stock has added around $770 billion in value so far this year. Microsoft’s market value of around $2.57 trillion sits just 13.6% south of Apple’s and nearly $1 trillion ahead of Alphabet.
Microsoft shares have been rallying in recent months as it compete with peers like Google to introduce generative artificial intelligence features onto its suite of products and services. The tech giant is overhauling its entire lineup of Office apps, including Excel, PowerPoint, Outlook and Word, with OpenAI technology.
The company has invested billions of dollars in OpenAI, the startup that launched the generative-AI ChatGPT to huge fanfare late last year.
In a recent presentation, Microsoft CFO Amy Hood, said that generative AI will be “the fastest growing $10 billion business in our history”.
J.P. Morgan analysts raised their price targets on Microsoft’s stock on Thursday, citing AI driving demand for the company’s products, reported Reuters. Analyst Mark Murphy said he sees Microsoft on a fast-growing path to $10 billion in AI business alone. Of the 53 analysts covering Microsoft, 44 recommended buying the shares and the median price target is $340, Refinitiv data said.
“We reaffirm our bullish-outlier viewpoint on generative AI and continue to see it driving a resurgence of confidence in key software franchises,” Reuters reported quoting JP Morgan analysts.
Microsoft’s earnings rose 10.4% from last year to $2.27 per share, just ahead of the Street consensus forecast of $2.23 per share. Net income rose 9% to $18.3 billion.
(With input from agencies)
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Updated: 16 Jun 2023, 02:08 AM IST
