Microsoft Corp (MSFT.O) experienced a surge in its shares, reaching a new record high close on Thursday, buoyed by market optimism surrounding artificial intelligence (AI) prospects. The technology giant has been recognized as a leader in AI adoption within the software industry, largely due to its substantial investment in OpenAI, the San Francisco-based startup that owns the widely popular chatbot ChatGPT.
Recently, Microsoft began rolling out various AI upgrades, including ChatGPT, to its Azure cloud services and search engine Bing. This strategic move aims to challenge the dominance of Alphabet Inc’s (GOOGL.O) Google. The company’s shares closed at $348.10 per share, a 3.2% increase, further solidifying its market capitalization at a record-breaking $2.59 trillion.
Simultaneously, Apple Inc (AAPL.O) also achieved a record high close, with shares reaching $186.01 on Thursday. Graphics chipmaker Nvidia (NVDA.O) saw its shares set a fresh intraday record of $432.89.
JPMorgan analysts, in response to Microsoft’s performance, raised their price target on the company’s stock. They cited the increasing demand for Microsoft’s products driven by AI technology. Among the 53 analysts covering Microsoft, 44 recommended buying the shares, with a median price target of $340, according to Refinitiv data.
The JPMorgan analysts further emphasized their positive outlook on generative AI, noting its potential to revitalize key software franchises and inspire confidence in the market. Microsoft’s continuous dedication to AI innovation positions it favorably in the industry.