Wedbush analysts: Microsoft – the next candidate to reach a $3 trillion market capitalization
The hype around artificial intelligence is fueling the growth of technology stocks. Analytical company Wedbush predicts the next candidate that could surpass a market capitalization of $3 trillion.
Microsoft’s advancements in artificial intelligence have caused a stir in the market, with leading industry experts at Wedbush Securities forecasting significant market growth for the tech giant. Wedbush predicts that Microsoft will become the next candidate for a $3 trillion market capitalization, attributing the buzz around AI as a key factor in this projected growth. With the company actively investing in AI and machine learning technologies, the potential impact on market expansion cannot be underestimated.
Last week, American tech giant Apple became the first company to reach a market capitalization of $3 trillion. This impressive record demonstrates that the company continues to hold its market position and succeed in its growth.
However, Wedbush analyst Dan Ives believes that Microsoft will soon follow in Apple’s footsteps and also reach a $3 trillion market cap. According to his predictions, by the beginning of 2024, Microsoft’s market value will reach this significant milestone. This will be possible due to several factors influencing the company’s growth.
One of the key factors contributing to Microsoft’s growth is its investment in OpenAI. Microsoft has invested around $1 billion in OpenAI, which has developed the chatbot ChatGPT. ChatGPT is an advanced artificial intelligence system capable of generating text that mimics human style. With the increasing demand for such technologies, OpenAI and its developments have significant investment potential and bring considerable benefits to Microsoft.
In addition, Microsoft Azure, the company’s cloud business, can also be an important factor in its growth. In the context of growing excitement around artificial intelligence and its applications in various fields, Microsoft Azure’s cloud technologies offer a variety of tools and solutions for developers and businesses. This allows the company to maintain its market position and attract new customers.
Proof of Microsoft’s stock growth is its already occurred growth in 2023. From January to July 2023, Microsoft’s stock has risen by 41%, and its market capitalization has increased to $2.55 trillion. This impressive growth attests to the investors’ trust in the company and its prospects.
Wedbush analysts, taking into account the stock growth and Microsoft’s prospects in the AI field, have set a target price of $375 per share. This value is 11% higher than the previous session’s closing level.
As of the writing of this article (July 6, 2023), Microsoft’s stock is trading at around $338. The company continues to have further growth potential and attracts the attention of investors who consider it a promising candidate for reaching a new significant milestone in the business world.
Microsoft has all the chances to become the next candidate to reach a $3 trillion market capitalization. Factors such as investment in OpenAI and a successful cloud business, supported by stock growth and analysts’ forecasts, contribute to the company’s growth and prospects. It is expected that by the beginning of 2024, Microsoft will reach this important milestone, confirming its leadership and strength in the information technology market.