Microsoft’s stock closed at an all-time high on Thursday, spurred by market confidence about the potential of artificial intelligence (AI). The market capitalisation of the technological behemoth has risen to a remarkable $2.59 trillion, demonstrating investor confidence in its AI ambitions.
Microsoft’s significant position in AI adoption within the software sector is largely owing to its substantial investment in OpenAI. OpenAI, a San Francisco-based business, is well-known for its popular chatbot, ChatGPT.
Microsoft recently began the launch of various AI advancements, including the integration of ChatGPT into Azure cloud services and its search engine, Bing, in a deliberate move to challenge Alphabet Inc’s Google’s dominance.
Microsoft’s stock closed trading on Thursday with a 3.2% rise, closing at $348.10 per share. Throughout the year, the stock has grown at a spectacular rate of over 45 percent.
Notably, its previous all-time high intraday price was $349.67 on November 22, 2021, while its prior record closing price was $343.11 on November 19, 2021.
Meanwhile, Apple Inc enjoyed a watershed moment when its shares closed at a record high of $186.01 on the same day. Nvidia, the developer of graphics chips, also joined the rise, setting a new intraday high of $432.89.
JPMorgan analysts boosted their price target on Microsoft stock earlier on Thursday, citing rising demand for the company’s AI-powered products. According to Refinitiv data, 44 of the 53 analysts covering Microsoft have suggested purchasing the stock, with a median price objective of $340.
JPMorgan analysts emphasised their sustained optimism about generative AI in a letter to clients, emphasising its critical role in generating trust and revitalising important software businesses.
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