Microsoft Corporation (MSFT) crossed the $3tn market valuation threshold on Wednesday, 24 January, for a short spell. Bloomberg reported that, the tech giant’s stock gained 1.7% during trading, pushing its shares to $405.63 and across the $3tn market cap brink. It ended the day on 0.92% in the green at $402.56 per share.
Microsoft’s brief brush with a $3tn market valuation
These movements show Microsoft’s tech giant standing is well-deserved. Its rival Apple Inc (AAPL) holds a market cap of just over $3tn and became the first company to achieve this.
Microsoft is one of the so-called Magnificent 7 tech outfits that boosted over half of market gains last year. These companies –Microsoft, Apple, Meta Platforms Inc. (META), Alphabet Inc. (GOOG), Amazon.com, Inc. (AMZN), Tesla, Inc. (TSLA), and Nvidia Corporation (NVDA) – carried their momentum into 2024, rising by 7.1% that tops the 4% Nasdaq 100 Index gain. Microsoft comprises 7.25% of the S&P 500 Index.
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According to Bloomberg, these increases echo investor optimism about AI developments. Microsoft uses it’s leverage as an OpenAI Inc. partner, to explore and roll out AI tools. In a Bloomberg interview, Brian Mulberry, a client portfolio manager at Zacks Investment Management, summed up the present landscape:
We understand that companies like Apple and Google and Meta are working on ways to monetize generative AI, but you have to admit that Microsoft right now is the only working model where you can engage with chatGPT for a subscription.
Economists believe the demands for cloud computing and supporting AI will boost Microsoft’s long-term growth. Bloomberg Intelligence opined that this company’s stocks will climb by 15% during its 2024 fiscal year.
