For the first time in its history, Microsoft crossed a $3 trillion market capitalization on Wednesday, recognizing the long-time tech leader's tremendous artificial intelligence win, conveying how confidence in AI has nurtured an unrelenting advance in the software titan.
The Financial Post reports that the stock rose as much as 1.3 per cent to US$403.95, resulting in a market capitalization of US$3 trillion. The commencement secures Microsoft's status as one of the largest public stocks. It briefly overshadowed Apple Inc. in value-- which became the first company to hit US$3 trillion last year. However, Microsoft dropped back below the iPhone maker, with the two trading places ever since.
Much of the reward indicates investor readiness for AI and its potential to increase growth in earnings and revenue. Microsoft, through its partnership with OpenAI, is considered one of the biggest beneficiaries of AI, issuing AI-supported services to customers.
How Much Will The Company Grow In 2024?
The clamor for AI resources is projected to support Microsoft's long-term growth trends. According to the Financial Post, revenue is expected to rise nearly 15 per cent in its 2024 fiscal year, faster than the overall tech sector, according to data published by Bloomberg Intelligence.
Forbes reported Microsoft became one of the few major firms to translate escalating AI interest into tangibly better financial results, noting their record revenues in each of its last two fiscal quarters, buoyed by 20% year-over-year growth in its AI-heavy intelligent cloud division.
Apple and Microsoft make up the "magnificent seven" big tech stocks guiding much of the stock market's recovery dating back to 2022. Alphabet, Amazon, Meta, Nvidia, and Tesla are among them. The companies have all benefited from investors' longing for exposure to AI. However, only four-- Apple, Meta, Microsoft, and Nvidia have reached all-time highs.
Microsoft "continues to dominate market share within the AI transformation taking place despite increased competition," Wedbush analyst Dan Ives wrote in an October note to clients.
The company will begin to report quarterly earnings as of next Thursday. Analysts estimate the tech giant will report $61 billion in sales, which would confirm another all-time high for Microsoft, revealed Forbes.
