Microsoft achieved a historic $3 trillion market valuation on Wednesday, in the latest example of how optimism over artificial intelligence has fuelled a seemingly unstoppable advance in the software giant.
The stock rose 1.3% to $404, resulting in a market capitalisation of $3 trillion. The threshold cements Microsoft’s status as one of the largest public stocks.It briefly surpassed Apple in value — which last year became the first company to hit $3 trillion — but subsequently dropped back below the iPhone maker, with the two trading places ever since.
The stock rose 1.3% to $404, resulting in a market capitalisation of $3 trillion. The threshold cements Microsoft’s status as one of the largest public stocks.It briefly surpassed Apple in value — which last year became the first company to hit $3 trillion — but subsequently dropped back below the iPhone maker, with the two trading places ever since.
The Redmond, Washington-based company is one of the so-called Magnificent 7 that fuelled the market’s advance over 2023, gaining about 57%. The advance continued into this year, with a 7.4% rise that exceeds the 4.6% gain of the Nasdaq 100 Index. Microsoft accounts for 7.3% of the S&P 500 Index.
Much of the gain reflects investor enthusiasm over AI and its potential to accelerate growth in both earnings and revenue. Microsoft, through its partnership with OpenAI, is seen as one of the biggest beneficiaries of AI. It has released AI-supported services to customers.