On Wednesday, Microsoft achieved a historic milestone by surpassing the $3 trillion market cap threshold for the first time. This momentary accomplishment briefly bestowed upon Microsoft the title of the “world’s most valuable company,” overtaking its long-time rival, Apple. The surge in Microsoft’s stock, rising over 1% during intraday trading to reach a peak of $405.63 per share, propelled its market cap beyond $3 trillion. This achievement cements Microsoft’s standing as a formidable presence in the global technology sector.
Microsoft stands out among tech giants as it capitalises on the growing enthusiasm for artificial intelligence (AI). The company, headquartered in Redmond, Washington, has forged a significant partnership with OpenAI, the developer of ChatGPT, reportedly valued at $13 billion.
Following the introduction of ChatGPT, Microsoft has introduced various products that empower companies and individuals to leverage the capabilities of generative AI. Notably, these offerings extend to its Bing search engine and Copilot virtual assistant.
Since the launch of ChatGPT in early November 2022, Microsoft’s shares have surged by approximately 67 percent, outpacing Apple, whose shares have seen an increase of about 40 percent during the same period. This underscores Microsoft’s strategic positioning in the AI landscape and its positive impact on the company’s market performance.
Microsoft has distinguished itself as one of the few major companies to effectively translate the increasing interest in artificial intelligence (AI) into tangible financial success. The company has reported record revenues in its last two fiscal quarters, driven by a substantial 20% year-over-year growth in its intelligent cloud division, which heavily emphasises AI technologies. This achievement underscores Microsoft’s ability to leverage the growing significance of AI in the technology landscape for notable financial gains.
Also read: Apple briefly toppled by Microsoft in market value scramble
