Microsoft Touches $3 Trillion Value on Bullish AI Bets

On optimism about its AI bets, Microsoft's market cap exceeded $3 trillion Wednesday after its stock rose 1% to an all-time peak of $404 per share.

Key Insights

  • Microsoft’s market cap exceeded $3 trillion intraday Wednesday as shares rose over 1% to a record $404.
  • Comes after Microsoft briefly surpassed Apple as most valuable firm two weeks ago on AI investment optimism.
  • Analysts see upcoming earnings beat amid leadership in areas like generative AI, raising price targets.

NEW YORK – Microsoft Corp (MSFT.O) briefly crossed the $3 trillion stock market value mark on Wednesday, becoming the second company to hit that milestone after Apple Inc (AAPL.O).

Microsoft shares rose over 1% to touch a record high of $404 in intraday trading, taking its market capitalization to $3.00 trillion before paring some gains.

The tech giant had surpassed Apple as the world’s most valuable firm two weeks ago when it closed at a market cap of $2.5 trillion, compared with Apple’s $2.4 trillion valuation then. Apple has since reclaimed the top spot.

Microsoft’s gains reflect optimism around its investments in fast-growing sectors like artificial intelligence, with expectations mounting ahead of its earnings next week.

Citi and Morgan Stanley analysts see Microsoft delivering a earnings “beat” and raised their price targets, citing its strong position in areas like generative AI.

Microsoft is up over 7% year-to-date, outperforming the Nasdaq index as investors continue to favor Big Tech companies with strong cash flows.

The huge rally has added about $800 billion to Microsoft’s market cap this year alone, underscoring its Wall Street momentum. Whether it can sustain the trillion-dollar milestones remains to be seen.

The tech giant is due to report quarterly earnings on Jan. 30.

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