Photo by Turag Photography on Unsplash
Microsoft Becomes the Second Company To Surpass the $3 Trillion Mark
January 24, 2024
Microsoft recently joined an elite league of tech companies by becoming the second company to achieve a $3 trillion market cap. This milestone was reached due to a surge in the company’s stock, motivated by the ascension of artificial intelligence (AI) in the tech scene.
The company’s market value has now surpassed the entire GDP of France and is just shy of matching that of the United Kingdom. Specifically, Microsoft’s stock rose by nearly 1.5% to approximately $405 per share on Wednesday afternoon, pushing the market cap past the $3 trillion hurdle. The only other member of this elite club is Apple.
Investors have been keen on Microsoft shares, which have increased more than 7% since the beginning of the year following a 40% jump last year. A significant chunk of this success is attributed to the surge in interest and investment in AI technology, perceived as a key growth driver for the company.
In 2023, Microsoft’s CEO, Satya Nadella, made a strategic multibillion-dollar investment in AI. This included commercializing AI tools like ChatGPT before any competition could, thus strengthening Microsoft’s positioning in the AI landscape. Another crucial move by Nadella was to strengthen the bond with OpenAI, the creators of ChatGPT, during a significant restructuring at OpenAI.
Apple had been leading the tech market for most of the past decade, but Microsoft pulled ahead, even if temporarily, to become the most valuable publicly traded company earlier in January.
Microsoft is a member of the “Magnificent 7,” a term coined for seven significant stocks, including Apple, Nvidia, Amazon, Alphabet, Meta, and Tesla. These seven stocks have been instrumental in uplifting markets to new heights recently.
Microsoft on its own makes up 7.3% of the S&P 500, and collectively, these seven companies boast a market cap larger than any country’s entire stock market, excluding the United States. Analysts from Bespoke Investment Group reported that Nvidia and Microsoft were responsible for about 75% of the S&P 500’s gain this year.
Analysts at Morgan Stanley believe that Microsoft’s investment in AI is likely to strengthen further, moving their stock price target from $415 to $450. Similarly, Bank of America analysts have also moved their target to $450 per share, predicting promising growth for the Washington-based company this quarter.
Recent News
New Starbucks Artist Collaboration Merch Announced
Inspired by personal experiences and cultural heritage, artist Monyee Chau brings forth a collection under the Starbucks Artist Collaboration Series set to debut this summer.
FDA Says Eating Yogurt May Help With One Common Disease
The Food and Drug Administration claims that yogurt could help with one common disease, but there’s a catch as to not mislead consumers.
Climeworks Unveils ‘World’s Largest’ Carbon Capture Plant
Amidst the global climate crisis, a groundbreaking solution emerges: the inauguration of the world’s largest carbon capture plant, “Mammoth,” in Iceland. Developed by Climeworks, this plant marks a significant stride in the pursuit of curbing planet-heating emissions.
Palmer Candy Company Recalls 29 Products for Possible Salmonella Contamination
The Food and Drug Administration (FDA) has recalled 29 of Palmer Candy Company’s white-coated confectionary items because of the potential for salmonella contamination.