Microsoft has crossed a significant milestone, with its valuation exceeding $3 trillion (€2.7 trillion), making it the second company, following Apple, to achieve this feat.
The surge in Microsoft’s valuation can be attributed in part to its strategic focus on integrating artificial intelligence (AI) into its products, which has instilled confidence among investors.
Last year, Microsoft, recognized as one of the ‘magnificent seven’ technology firms driving growth in US stock indexes, invested a substantial $10 billion (€9.2 billion) in various AI initiatives.
This propelled Microsoft to the forefront of AI innovation, surpassing younger rivals such as Google and Meta.
Highlighting the potential of AI, Brad Smith, Microsoft’s Vice Chair and President, emphasized its applications in healthcare and education during a conference in Brussels last June.
Furthermore, Microsoft recently announced a decade-long partnership with UK telecoms company Vodafone, aiming to support Vodafone in delivering generative artificial intelligence (AI), digital, enterprise, and cloud services to over 300 million businesses and consumers in Europe and Africa.
As the second-largest cloud computing provider, Microsoft has intensified its efforts by developing its own AI-supporting chips, heightening competition with Amazon and Google in managing artificial intelligence tools for enterprises.
Apple, a key competitor of Microsoft, reached the $3 trillion milestone in June last year. Since January, Microsoft shares have vied with Apple’s for the title of the world’s most valuable company, briefly surpassing the iPhone maker earlier this month.
Microsoft is expected to release its financial results for the second quarter of fiscal year 2024 by the end of this month.
