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Microsoft hits $3 trillion market cap

Jan 25, 2024, 01:11 IST
Business Insider
Microsoft's valuation crossed $3 trillion on Wednesday.Ethan Miller / Getty
  • Microsoft traded above $404 a share on Wednesday, crossing $3 trillion in valuation.
  • It's the second company ever to hit that mark, joining Apple.
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Microsoft climbed 1.3% to hit $404 a share on Wednesday, bringing its valuation above $3 trillion for the first time ever.

The tech and artificial intelligence leader joins Apple as the only two companies to touch the milestone. Apple first reached it last summer, and with a stock price of about $195 a share, it remains right above that level.

Microsoft has climbed more than 9% so far in January, including Wednesday's trading session, surpassing the 5.45% gain Apple has seen.

The stock surge comes after a series of recent strategic wins for the company, starting with chief executive Satya Nadella's move to take a multibillion-dollar stake in OpenAI, the developer behind ChatGPT, a year ago.

The move has helped solidify Microsoft's position as a leader in the nascent space, as OpenAI's ChatGPT became the face of the AI boom over the last year. The company generates around $1.3 billion a year, The Information reported in October, and it's helped fuel a shift in priorities toward AI for Microsoft as a whole.

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Thanks to AI, Wall Street strategists expect a strong showing for Microsoft's latest earnings report. Citi analysts raised their price target and reiterated their "buy" rating on the stock, per CNBC.

Microsoft reports earnings on January 30.

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