'AI Fever' Drives MS Stock to All-Time High... Apple Also Hits New Record Again

MS "AI Sales Expected to Reach $10 Billion Annually"

Microsoft (MS) stock hit an all-time high fueled by the generative artificial intelligence (AI) boom. With forecasts suggesting annual AI revenue could reach $10 billion this year, the stock has been rising continuously. The tech sector's strength continues as Apple, the world's largest company by market capitalization, hit a new record high again just two days after setting its previous peak.

On the 15th (local time) at the New York Stock Exchange, MS closed at $348.19, up 3.2% from the previous trading day. This surpassed the all-time high of $343.11 recorded on November 19, 2021.

MS is the biggest beneficiary of generative AI, having invested $11 billion in OpenAI, the developer of ChatGPT. The stock has risen for six consecutive trading days and has gained 46% so far this year, fully recovering last year's losses. As a result, MS's market capitalization stands at $2.59 trillion, closely trailing Apple’s $2.93 trillion.

In particular, the outlook for AI revenue reaching $10 billion this year has driven MS’s stock price higher. Earlier, on the 12th, Amy Hood, MS Chief Financial Officer (CFO), stated, "The next-generation AI business will be the fastest-growing in MS history, reaching a scale of $10 billion." Kevin Scott, MS Chief Technology Officer (CTO), also explained at the same event, "Cloud-based AI services are very common services," adding, "There are various ways to reach an annual recurring revenue (ARR) of $10 billion."

Additionally, the Federal Reserve (Fed), which had raised interest rates ten consecutive times since March last year, paused rate hikes the day before, which boosted market sentiment and supported MS’s stock rally.

The outlook for MS stock remains positive. According to financial information provider Refinitiv, 44 out of 53 analysts covering MS have a buy rating. The median target price is $340. Among them, JP Morgan raised its target price from $315 to $350, citing that AI will drive increased demand for MS products and services. Market experts recommending a ‘buy’ on MS commented, "We see MS sowing the seeds of long-term success by investing in future-oriented OpenAI and ChatGPT, following its strengths in security, Teams, and Power applications."

On the same day, Apple, the largest company by market cap, also set a new record high. Apple closed at $186.01, up 1.12% from the previous trading day, breaking its record just two days after setting it on the 13th. Nvidia, which holds 90% of the AI semiconductor market, also continued its strong performance, hitting an intraday high of $432.89.

Until last year, U.S. tech stocks struggled due to pessimism about cloud growth and recession fears. However, the AI investment boom sparked by ChatGPT has sustained their strength. The Nasdaq index, which is tech-heavy, has risen 32% so far this year, nearly double the gain of the S&P 500 index.

This content was produced with the assistance of AI translation services.