Microsoft Corporation (MSFT) briefly surpassed the $3 trillion market valuation threshold on Wednesday, January 24th. The tech giant’s stock rose 1.7% during trading, pushing its stock price to $405.63, pushing it over the brink of a $3 trillion market cap, Bloomberg reported. The stock gained 0.92% on the day, ending the day at $402.56 per share.
These moves demonstrate that Microsoft’s status as a tech giant is well-deserved. Rival Apple Inc. (AAPL) has a market capitalization of just over $3 trillion, making it the first company to do so.
Microsoft is one of the so-called “Magnificent Seven” technology companies that drove more than half of market profits last year. These companies – Microsoft, Apple, Meta Platforms Inc. (META), Alphabet Inc. (GOOG), Amazon.com, Inc. (AMZN), Tesla, Inc. (TSLA), and Nvidia Corporation (NVDA) – are We took over the momentum. Through 2024, it rose 7.1%, outpacing the Nasdaq 100 index’s 4% gain. Microsoft makes up his 7.25% of the S&P 500 index.
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According to Bloomberg, the increase reflects investors’ optimism about AI developments. Microsoft leverages its strength as a partner with OpenAI Inc. to explore and deploy AI tools. In an interview with Bloomberg, Brian Mulberry, client portfolio manager at Zacks Investment Management, summed up the current situation:
While we understand that companies like Apple, Google, and Meta are working on ways to monetize the AI they generate, we must acknowledge that Microsoft is currently the only viable model for chatGPT on a subscription basis. It doesn’t have to be.
Economists believe demand for cloud computing and AI support will drive Microsoft’s long-term growth. Bloomberg Intelligence said the company’s stock is expected to rise 15% in fiscal 2024.
