Microsoft Achieves Record Valuation of $2.6 Trillion Driven by AI Potential

Microsoft Corp. shares closed at a brand new file excessive of $348.10 on Thursday, buoyed by market optimism concerning the prospects of AI. The tech large’s market capitalization has reached a file $2.59 trillion.

Printed: 16 June 2023, 8:26 am Up to date: 16 Jun 2023, 8:26 am

On Thursday, Microsoft’s inventory exhibited a 3.2% enhance, closing at $348.10 per share. With a year-to-date development surpassing 45%, the inventory’s earlier file closing value of $343.11 on November 19, 2021.

In line with Reuters, JPMorgan analysts have raised Microsoft’s inventory value goal on the again of elevated demand for the corporate’s AI-driven merchandise. From the 53 analysts overlaying Microsoft, 44 advocate buying the shares, with a median value goal of $340.

Microsoft is taken into account a frontrunner within the software program business’s adoption of AI know-how attributable to its important funding in OpenAI, the creator of ChatGPT. The tech firm invested $10 billion in OpenAI this yr and would reportedly take 75% of the AI firm’s income. 

Microsoft has built-in OpenAI instruments into its Bing search engine and Home windows working system. The corporate lately launched a number of AI upgrades to its Azure cloud companies and Bing.

In April, Microsoft’s CFO Amy Hood predicted a 26% to 27% year-over-year development for Azure cloud in fixed foreign money in the course of the fiscal fourth quarter, with one share level attributed to AI companies. In a current dialogue with Microsoft’s know-how chief Kevin Scott, Hood acknowledged that the upcoming AI enterprise can be its fastest-growing $10 billion enterprise ever. In line with CNBC, Microsoft has generated almost $208 billion in complete income over the previous 4 quarters.

In the meantime, Microsoft’s competitor Google has warned workers about utilizing AI chatbots. The priority stems from the potential of inadvertent knowledge and delicate info leakage by AI techniques. The search engine large and the creator of Bard chatbot is taking steps to make sure the accountable dealing with of chatbot know-how.

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