Microsoft briefly hit US$3 trillion value to surpass Apple, shares close at record on AI optimism
- The software giant is one of the so-called Magnificent 7 that fuelled the US market’s advance over 2023, gaining about 57 per cent
- Much of the gain reflects investor enthusiasm over AI and its potential to accelerate growth in both earnings and revenue
The stock rose as much as 1.7 per cent to US$405.63, taking its market capitalisation just over US$3 trillion during market hours. However, it closed up just 0.9 per cent, ending at a record but with a valuation of US$2.99 trillion.
“There is a huge push toward generative AI, and Microsoft is holding a tremendous number of the cards with its offerings,” said Ted Mortonson, technology desk sector strategist at Baird.
“To see a company of this size with this kind of growth is pretty amazing, and I think that so long as we continue to see this kind of growth, the stock will continue to rip.”
The Redmond, Washington-based company is one of the so-called Magnificent 7 that fuelled the market’s advance over 2023, gaining about 57 per cent. The advance continued into this year, with a 7.1 per cent rise that exceeds the 4 per cent gain of the Nasdaq 100 Index. Microsoft accounts for 7.25 per cent of the S&P 500 Index.