Microsoft will have a stock market capitalisation of over $3 trillion by early 2024, according to stock analysts at wealth management firm Wedbush Securities and investment banking company Morgan Stanley.
These projections are based on the major investments Microsoft is making with artificial intelligence, such as assistance technology across Azure, Bing and Microsoft 365.
“We estimate for every $100 of cloud Azure spend with Microsoft there is an incremental $35-$40 of AI spend that now is on the table which changes the game,” said Daniel Ives, managing director or equity research at Wedbush. “We believe on a sum-of-the-parts valuation that Microsoft should join Apple in the exclusive $3 trillion club by early 2024.
“Over the last few weeks in our numerous conversations with Microsoft customers, partners, and field checks it has become crystal clear to us that the monetisation opportunities around deploying AI and ChatGPT in the cloud is a transformational opportunity across the industry.”
Keith Weiss, managing director at Morgan Stanley, said: “Generative AI looks to significantly expand the scope of business processes able to be automated by software. Microsoft stands best positioned in software to monetize that expansion.”