Unprecedented Growth Fueled by AI Optimism
Microsoft Corp (NASDAQ:MSFT) shares are charting a trajectory towards a historic peak, propelled by the market's heightened optimism surrounding the potential of AI. The tech behemoth's near $2.6 trillion valuation underlines the scale of this optimism.
Microsoft's Leadership in AI Adoption
Regarded as a trailblazer in AI adoption within the software industry, Microsoft's considerable investment in San Francisco-based startup OpenAI sets it apart. OpenAI is the brain behind the acclaimed chatbot, ChatGPT.
AI Upgrades Rolled Out to Challenge Rivals
In its recent competitive stride, Microsoft rolled out a suite of AI upgrades, including ChatGPT, across its Azure cloud services and search engine Bing. This move directly challenges Alphabet Inc's Google's supremacy in the market.
Microsoft's Shares Climbing to Record High
Microsoft's shares witnessed a hike of 3.3%, trading at $349.15 per share this Thursday. This year has seen the stock appreciate by over 45%, with the previous record close standing at $343.11 on Nov. 19, 2021. The stock's intraday record high was $349.67 on Nov. 22, 2021.
Analysts Anticipate AI-driven Demand
Analysts at J.P. Morgan have increased their price targets on Microsoft's stock, attributing the surge to AI-triggered demand for the company's products. Among the 53 analysts tracking Microsoft, 44 recommend buying the shares, with the median price target settling at $340, as per Refinitiv data.
Bullish Outlook on Generative AI
"We uphold our bullish outlook on generative AI, foreseeing it to drive renewed confidence in core software franchises," wrote JP Morgan analysts in a note to clients, maintaining a positive perspective on the future of AI in the industry.