Microsoft's market capitalization briefly topped a historic $3 trillion on Wednesday, becoming yet another example of how the artificial intelligence craze is adding to the software giant's seemingly unstoppable momentum. The stock rose 1.7% to $405.63 during the session, pushing the market value just past the $3 trillion threshold. However, Microsoft's gains narrowed to 0.9% at the close, setting a new high while its valuation also fell slightly to $2.99 ​​trillion.

Although it failed to hold this mark, Microsoft still consolidated its position as a very large public company. Its market value also briefly surpassed Apple, which was the first to cross the US$3 trillion threshold last year. The two giants once formed a situation of chasing each other. Apple ultimately closed with a market capitalization of $3.01 trillion.


"Generative artificial intelligence is taking off, and Microsoft's products have a huge advantage," said Ted Mortonson, technology industry strategist at Baird. "It's pretty shocking to see a company of this size achieve this kind of growth, and I think the stock will continue to rise as long as we continue to see this kind of growth."

The Redmond, Washington-based company is one of the "Big Seven" driving U.S. stocks in 2023. Microsoft surged 7.4% this year on top of last year's 57% surge, outperforming the Nasdaq 100's 4.6% gain. Microsoft's weight in the S&P 500 is 7.3%.

Much of the gains reflect investor enthusiasm for artificial intelligence and its potential to accelerate profit and revenue growth. Through cooperation with OpenAIInc. cooperation, Microsoft is regarded as one of the biggest beneficiaries of artificial intelligence. It has also launched AI-powered services to its customers.

Demand for artificial intelligence services and the cloud computing behind them is expected to support Microsoft's long-term growth trends. Data shows that the company’s revenue in fiscal 2024 is expected to grow by nearly 15%, exceeding the overall technology sector.

That growth has made Microsoft one of Wall Street's most popular stocks. More than 90% of analysts tracked by the media recommend buying the stock, with the average price target about 7% higher than current levels.

Microsoft will report second-quarter results later this month.