Microsoft Corp (NASDAQ:MSFT) is nearing a $4 trillion market valuation, with analysts at Wedbush projecting the tech giant will hit the historic milestone this summer. Nvidia Corp (NASDAQ:NVDA, ETR:NVD) earlier this week became the first ever company to achieve a $4 trillion market cap.
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Microsoft's chief commercial officer Judson Althoff said during a presentation this week that AI tools are boosting productivity across sales, customer service, and software engineering, Bloomberg reports. Althoff noted AI has been so useful that Microsoft was able to save more than $500 million last year in its call center alone.
In the latest trading session, Microsoft (MSFT) closed at $503.51, marking a +1.39% move from the previous day.
Microsoft is ramping up internal use of artificial intelligence (AI) tools to cut costs and increase productivity, even as the company trims thousands of jobs across departments.
The tech giant last week announced plans to lay off nearly 4% of its workforce as it looks to rein in costs amid hefty investments in AI infrastructure.
Microsoft's latest technical indicators keep showing strong buying pressure despite the outsized price really since our last writing. These indicators include bullish RSI, a 'golden cross' pattern, and also widening Bollinger Band widths. Fundamentally, AI-driven demand, especially through Azure and Microsoft 365 Copilot, keeps fueling robust growth.
The chip maker's stock touched an intraday level needed to achieve a $4 trillion market cap, but has since pulled back slightly.
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The sustaining growth of the company's AI revenue and cloud platform Azure are not fully priced into the stock, Oppenheimer analysts said.
Microsoft is a clear leader in AI monetization, with favorable OpenAI deal terms and accelerating revenue from AI products. Operational execution remains stellar, with broad-based double-digit growth, expanding margins, and a record backlog across Azure, 365, and enterprise suites. Capital intensity is nearing an inflection point, positioning Microsoft for significant free cash flow expansion as AI investments start to mature.