- Microsoft surpassed a $3 trillion market cap, becoming the second company to achieve this milestone.
- The intensified competition for the title of ‘top U.S. stock’ reflects a fundamental shift, with Microsoft leading in AI through investments like Open AI.
- Analysts predict a 15% growth in Microsoft’s 2024 fiscal year revenue, making it a preferred stock on Wall Street with over 90% bullish sentiment.
On Wednesday, Microsoft surged over 1.1%, reaching $403.58, becoming the second $3 trillion market cap company, surpassing Apple, which currently dropped 0.1% with a market cap of $3.01 trillion.
Intensified tech stock battle between Microsoft and Apple
The battle for the title of ‘top U.S. stock’ between the long-time tech giants Microsoft and Apple has intensified this year. Earlier this month, Microsoft’s market cap of $2.89 trillion exceeded Apple’s $2.87 trillion, reclaiming the title of the world’s most valuable company. With the AI boom over the past year, Microsoft, with a clear lead in the AI field through its investment in Open AI, appears to have gained a fundamental advantage.
Market consensus suggests that considering the financial performance and future revenue and profit expectations of both companies, Apple is no longer a growth stock, making Microsoft a better long-term investment. Companies like Apple, Google, and Meta are exploring how to profit from generative AI, but Microsoft is currently the only one successfully using ChatGPT through subscriptions. As the push for the development of generative AI continues, Microsoft holds a significant advantage in this field. Witnessing such growth in a company of this scale is truly remarkable, and as long as this growth persists, its stock value is likely to continue rising.
Also read: Meta Platforms passes $1 trillion in market cap
Also read: Microsoft tops Apple in market value with AI focus
Microsoft’s 15% growth forecast boosts favouritism on Wall Street
The ‘Big Seven’ tech companies are set to report new earnings, with their returns exceeding 4% this month, outperforming the S&P 500 by over two percentage points. Microsoft is expected to announce its latest earnings later this month, with the demand for AI services combined with cloud computing expected to boost its long-term growth trend. Analysts predict a 15% growth in Microsoft’s revenue for the 2024 fiscal year, outpacing the entire tech industry, making Microsoft one of Wall Street’s most favoured stocks. Over 90% of tracked analysts are bullish on Microsoft, with an average target price suggesting around a 7% upside from its current stock price.
