The halo of AI winners shines brightly as Microsoft's stock price reaches a new high after a year
Microsoft's stock price reached an all-time high of $467.68 on Thursday, breaking the previous record set nearly a year ago. Investors believe Microsoft is a major winner in the field of artificial intelligence, driving its market capitalization to approximately $3.48 trillion, making it the highest-valued company in the world. Microsoft's cloud computing and AI services have shown strong growth, and analysts are generally optimistic about its prospects, with over 90% recommending buying the stock
According to Zhitong Finance APP, Microsoft's (MSFT.US) stock price hit a record high on Thursday, breaking the previous peak set nearly a year ago, as investors increasingly view the software giant as a major winner in the artificial intelligence (AI) sector.
Microsoft's stock rose 0.8% on Thursday to $467.68, surpassing the peak reached in July last year. The stock has climbed over 30% from its low in April. This surge has added more than $800 billion to Microsoft's market capitalization, reaching approximately $3.48 trillion, making it the most valuable company in the world, slightly ahead of another big winner in the AI era, NVIDIA (NVDA.US), which has a market cap of $3.42 trillion.
Microsoft's stock has risen 11% this year, outperforming the Nasdaq 100 index.
Microsoft's stock price hits a record high
Microsoft's recent performance supports the bullish view: Microsoft is set to become a leader in the AI field and one of the key companies to monetize this technology, alleviating concerns about the returns on its multi-billion dollar investments in AI.
According to Microsoft's financial report, both cloud computing and AI services show strong growth trends and robust demand, reinforcing the view that, amid turmoil, Microsoft is a stable oasis largely unaffected by tariffs and uncertain macroeconomic prospects. Microsoft has been significantly cutting jobs, indicating that the company is very focused on costs.
Jim Awad, Senior Managing Director at Clearstead Advisors, stated, "Microsoft is well-positioned in its product line and has the ability to truly monetize AI. I believe that when we look back in three to four years, it will be one of the companies that benefits the most from AI."
Although Microsoft is the stock among the seven giants that has taken the longest to reach a new high, it has never fallen out of favor. Data from Bank of America shows that Microsoft is the most held stock among bullish funds, with 91% of funds holding the stock. Additionally, over 90% of analysts tracked by Bloomberg recommend buying Microsoft stock, with no one giving a sell rating.
Such optimistic consensus can sometimes be seen as a contrarian danger signal, but Wall Street analysts do not seem to believe that Microsoft's upward momentum will end soon: the average target price from analysts suggests a double-digit increase over the next 12 months.
Awad stated, "Microsoft should continue to grow at an astonishing rate, and the stock price does not seem too high. When everyone reaches a consensus, it can be unsettling, but for now, I believe the consensus is correct."
