Microsoft’s market value jumps by $154 billion following launch of its AI program

Microsoft saw its market value climb by as much as $154 billion, before finishing the session with a $102 billion gain
ChatGPT launches Android version in the US, Brazil and India
Microsoft and OpenAI partnership

Microsoft’s market capitalization has increased by as much as $154 billion in a single day following the launch of the Copilot subscription, an AI program. Its shares reportedly soared up 6% to a record high of $366.78 after it introduced a $30 AI subscription for its Office 365 platform.

The company saw its market value climb during intraday transactions by as much as the aforementioned amount, before finishing the session with a $102 billion gain. Its market capitalization has reportedly increased by $885 billion year-to-date, which makes its stock price increase by 50% over that time.

Earlier this year, the tech giant established that it looked forward to investing $10 billion in OpenAI. Following the introduction of OpenAI’s ChatGPT, investor funding into the company has increased. This in turn has had a massive impact on the company’s stock.

According to a report, this milestone has placed Microsoft as the second-largest company of the S&P 500’s “Magnificent 7” tech mega-caps, alongside Apple, Amazon, Meta, Tesla, and others, and the current combined worth is staggering at $11 trillion, or, for another comparison, roughly three times Germany’s Gross Domestic Product(GDP).

Microsoft services down globally due to networking outage
Microsoft as a “Top Pick”

Recall that the tech giant’s stock was tagged a “Top Pick” by an American investment bank, Morgan Stanley, projecting a potential upside of 22% from its current levels. It was also predicted that Microsoft would follow Apple, which recently reached this milestone, and become the next mega-cap tech company to achieve a valuation of $3 trillion.

“Generative AI looks to significantly expand the scope of business processes able to be automated by software, and Microsoft stands best positioned in software to monetize that expansion, which accompanied with a still reasonable valuation makes Microsoft our Top Pick in large-cap software,”

Keith Weiss, Managing Director at Morgan Stanley

As confirmed in a report, the bank raised its $415 price estimate for Microsoft from $335 by 24%. This made the company’s recent share price increase by more than 1% to $342.85.

The Managing Director at Morgan Stanley, Keith Weiss, stated that as the firm integrates generative AI technology across its software offerings, Microsoft’s capacity to use its more than $10 billion investment in OpenAI represents a possible $90 billion incremental opportunity for the company in 2025.

Read More: Here’s what Tinubu said while meeting Microsoft’s Bill Gates, Aliko Dangote at Aso Villa

Microsoft in previous months

Microsoft was established in 1975 with the goal of making it possible for individuals and organizations all around the world to realize their full potential. This will be achieved by developing technology that revolutionizes how people interact, work, and play. The company’s rapid rate of innovation, solid brand, size, and leadership are its key competitive advantages.

In order to give almost 40 million people in Latin America and Africa access to high-speed internet, Microsoft’s Airband announced two months ago new and expanded partnerships. The project would be created through alliances and would target various African nations, including Cote d’Ivoire, Kenya, Nigeria, Tanzania, and Uganda.

Weeks ago, the tech company also collaborated with the Federal Government of Nigeria (FGN), Data Scientists Network (DSN), and Data Science Nigeria to train young professionals in the use of the new Responsible AI Dashboard.

These and more factors contribute to its strong reputation.

Read More: Microsoft to lay off another 276 employees in a fresh wave of job cuts

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