New Dellhi: Microsoft’s shares soared to a historic high close on Thursday, fueled by market optimism surrounding the potential of artificial intelligence (AI). The technology giant’s market capitalisation reached a staggering $2.59 trillion, reflecting investor confidence in its AI initiatives.
Recognised as a frontrunner in AI adoption within the software industry, Microsoft’s prominent position is largely attributable to its substantial investment in OpenAI. OpenAI, a San Francisco-based startup, is renowned for its widely acclaimed chatbot, ChatGPT.
In a strategic move to challenge the dominance of Alphabet Inc’s Google, Microsoft recently initiated the rollout of numerous AI enhancements, including the integration of ChatGPT into Azure cloud services and its search engine, Bing.
On Thursday, Microsoft’s shares concluded trading with an impressive 3.2 per cent increase at $348.10 per share. Throughout the year, the stock has demonstrated remarkable growth, amassing over 45 per cent. Notably, its previous record closing price of $343.11 was set on November 19, 2021, while the stock’s all-time intraday high was $349.67 on November 22, 2021. Meanwhile, Apple Inc also experienced a milestone moment as its shares achieved a record-high close of $186.01 on the same day. Graphics chipmaker Nvidia also joined the rally, reaching a fresh intraday record of $432.89.
Earlier on Thursday, JPMorgan analysts raised their price target on Microsoft’s stock, citing the increasing demand for the company’s products driven by AI technology. Out of the 53 analysts covering Microsoft, 44 have recommended buying the shares, with a median price target of $340, according to Refinitiv data.
In a note to clients, JPMorgan analysts expressed their continued optimistic outlook on generative AI, underlining its pivotal role in instilling confidence and revitalising key software franchises.
