Microsoft Corp's (MSFT.O) stock prices hit a new zenith this Thursday, bolstered by investors' positive sentiment regarding the future of artificial intelligence (AI). This surge in optimism has elevated the tech titan to a record-shattering market capitalization of $2.59 trillion.
Attributed to its substantial backing of OpenAI, Microsoft has established itself as a trailblazer in adopting AI in the software sphere. The San Francisco-headquartered startup, OpenAI, is recognized for its immensely popular AI chatbot, ChatGPT.
In an effort to take on Google's preeminence, a property of Alphabet Inc, Microsoft implemented a series of AI enhancements last month. These updates, including the chatbot ChatGPT, were introduced across Azure cloud services and its search engine, Bing.
Closing at a notable 3.2% increase, Microsoft's shares ended at $348.10 per share this Thursday. The company's stock has seen an impressive rise of over 45% year-to-date, with its previous record close being $343.11 on November 19, 2021. Microsoft's stock even registered an all-time intraday high of $349.67 on November 22, 2021.
Simultaneously, Apple Inc's stock also witnessed a record close of $186.01 on the same day. Shares of Nvidia, a leading graphics chip producer, also marked a new intraday record at $432.89.
Reflecting the optimistic market sentiment, JPMorgan analysts increased their price targets on Microsoft's stocks this Thursday, attributing the revision to the growing demand stimulated by AI for the company's offerings. Among the 53 analysts monitoring Microsoft, 44 advocated for share purchases. The median price target stands at $340, as per data from Refinitiv.
JPMorgan analysts voiced their optimism for AI, stating in a client note, "Our positive-outlier stance on generative AI remains intact. We foresee it invigorating confidence in pivotal software franchises."