Microsoft Hits Record Valuation of $2.59 Trillion as its Share Price Soars

Microsoft's heavy investment into artificial intelligence (AI) appears to have paid off, as shares of Microsoft Corp soared to a record high, closing at $348.10 per share on Thursday. The company now boasts of a record market valuation of $2.59 trillion.

Analysts Bullish on Microsoft

MIcrosoft's shares accumulated a massive growth of 45 percent throughout the year, with trades closing at $348.10 per share yesterday. The last time it reached a record closing price was on November 19, 2021, recording a share price of $343.11. Its share hit an all-time intraday high of $349.67 on November 22, 2021.

Although not as impressive as Microsoft's performance in the share market, Apple Inc also joined the rally and recorded an all-time-high close of $186.01 on the same day. Graphics chipmaker Nvidia is also having a bullish run, achieving a new intraday record of $432.89 on Thursday.

JPMorgan analysts increased their price target on Microsoft's stock earlier on Thursday, stating that there's a soaring demand for the company's AI-driven products. According to Refinitiv data, 44 out of 53 analysts recommended buying Microsoft shares, predicting a median price target of $340.

JPMorgan analysts said in a note to clients, "We reaffirm our bullish-outlier viewpoint on generative AI and continue to see it driving a resurgence of confidence in key software franchises."

Microsoft Investing Heavily in AI

An early adopter of AI-powered products in the software industry, Microsoft has been heavily investing in OpenAI, a San Francisco-based startup renowned for the wildly popular chatbot ChatGPT.

As other tech giants like Google try to catch up, Microsoft has been swift to introduce useful AI upgrades. A few weeks back, Microsoft Designer was infused with AI smarts, allowing users to quickly create social media content, along with captions and hashtags.

Just last month, the company brought ChatGPT to Bing search, adding the chat history feature for Bing chat. It also features a new overlay design for responses that include videos.

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