Market optimism surrounding the potential of artificial intelligence (AI) has propelled Microsoft Corp shares to a new record high close. This achievement has contributed to Microsoft’s market capitalization reaching a remarkable $2.59 trillion.
Microsoft is widely regarded as a leader in AI adoption within the software industry, thanks in part to its substantial investment in OpenAI, a San Francisco-based startup known for its popular chatbot, ChatGPT.
Last month, Microsoft commenced the rollout of several AI enhancements, including ChatGPT, to its Azure cloud services and search engine Bing. This strategic move aims to challenge the dominance of Google, owned by Alphabet Inc.
On Thursday, Microsoft’s shares closed up 3.2% at $348.10 per share. The stock has seen an impressive year-to-date gain of over 45% and had previously achieved a record close of $343.11 on November 19, 2021. Its intraday record high of $349.67 was recorded on November 22, 2021.
In addition, Apple Inc also saw its shares reach a record high close of $186.01 on Thursday, while graphics chipmaker Nvidia set a fresh intraday record of $432.89.
Earlier on Thursday, JPMorgan analysts raised their price target on Microsoft’s stock, citing increased demand for the company’s products driven by AI. Among the 53 analysts covering Microsoft, 44 recommended buying the shares, with a median price target of $340, according to Refinitiv data.
“We reaffirm our bullish-outlier viewpoint on generative AI and continue to see it driving a resurgence of confidence in key software franchises,” stated JPMorgan analysts in a note to clients.
The record-setting performance of Microsoft’s shares underscores the market’s confidence in the company’s AI endeavors. With its significant investments, technological advancements, and strategic initiatives, Microsoft remains at the forefront of AI innovation, driving its software franchises to new heights.