Microsoft’s market cap crosses $3 trillion, stock trades 52-week high
- The shares of the technology giant were trading at $403.78 each on the NASDAQ on Wednesday, reflecting a 1.17% increase.
The market capitalisation of tech giant Microsoft has officially touched $3 trillion mark on January 24. The tech giant has become the second company to reach this milestone after iPhone maker Apple, who achieved this record last year in June.
It momentarily exceeded the valuation of Apple Inc., the first company to achieve a $3 trillion market cap last year. However, it subsequently retreated below the valuation of the iPhone maker, and the two have been alternating positions in the market ever since.
The shares of the technology giant were trading at $403.78 each on the NASDAQ on Wednesday, reflecting a 1.17% increase. The day commenced with the stock opening at $401.48, surpassing its previous day's closing price of $398 per share.
According to reports, much of its gains reflect investor optimism regarding artificial intelligence (AI) and its capacity to propel both earnings and revenue growth.
Microsoft, positioned as one of the primary beneficiaries of AI, is capitalizing on this trend through its collaboration with OpenAI Inc. The company has introduced AI-enhanced services, contributing to its positive market perception.
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The anticipated surge in demand for AI services, complemented by the necessary cloud computing infrastructure, is poised to sustain Microsoft's enduring growth trajectory. Projections indicate a forecasted revenue increase of nearly 15% in the fiscal year 2024, surpassing the growth rate of the broader technology sector, as per insights from Bloomberg Intelligence.
This robust growth has positioned Microsoft as one of the highly sought-after stocks on Wall Street. Over 90% of analysts recommends buying shares, and the average analyst price target indicates a potential upside of approximately 7% from the current levels.
(With Inputs from Bloomberg)
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