Microsoft's shares have surged to an all-time high, driven by investor interest in the company's ambitious artificial intelligence (AI) roadmap. The stock has experienced six consecutive days of positive momentum and is on track to achieve a record closing high. This growth comes despite the setback caused by the halted acquisition of video game publisher Activision Blizzard Inc., valued at $69 billion.
Microsoft's shares soared over 3% and remained close to their intraday peak, reaching a record high last seen on November 19, 2021. Throughout the year, the stock has outperformed the Dow Jones Industrial Average, with a staggering 44% increase compared to a modest 4% rise in the index.
The S&P 500 index has climbed approximately 15% year-to-date, while the tech-heavy Nasdaq Composite has surged by 31%, and the iShares Expanded Tech-Software Sector exchange-traded fund has experienced substantial growth of 36%.
During afternoon trading, Microsoft played a pivotal role in driving the Dow Average, contributing over 140 points of gain. The Dow Average recorded an increase of over 370 points or 1.2% for the day.
Leading analysts have revised their price targets upward for Microsoft, with Mizuho and JPMorgan raising their respective targets. JPMorgan analyst Mark Murphy envisions Microsoft's rapid trajectory toward a $10 billion AI business. He highlighted the company's strategic monetization of AI, particularly through tools and services utilized by customers to develop AI applications and services.
Microsoft has made significant investments in OpenAI, a startup known for its generative AI technology, including ChatGPT. These investments have positioned Microsoft as a frontrunner in AI adoption within the software industry.
While Microsoft's shares continue to reach new heights, approaching a valuation of $2.6 trillion, a temporary restraining order has been issued, halting the company's acquisition of Activision. This decision follows the approval of the deal by EU regulators but rejection by UK regulators due to concerns about potential anticompetitive repercussions.
