The actions ofMicrosoft (MSFT) have had an impressive performance in the last year, increasing around 65%, more than tripling the 20% increase in the S&P 500 index during that period. For the software giant, This includes gains of 17% and 5% in six months and one monthrespectively, also outperforming the S&P 500 index in both periods.
With Friday’s closing price at US$388.47 per share, the company led by Satya Nadella It now has a market capitalization of $2.89 trillion, which is enough to surpass the market capitalization ofApple’s $2.87 billion (AAPL) and claim the title of the most valuable company in the world, as anticipated Ambit. Investors have fallen in love with Microsoft for a variety of reasons, the most notable being the company’s advances in generative artificial intelligence, which began in late 2022 with its $10 billion investment in OpenAI’s ChatGPTgiving Microsoft 33% ownership of the company.
Microsoft’s stake in OpenAI, valued at $86 billion, has increased to 49% after an additional $3 billion purchase.
Microsoft: the data behind its growth
ChatGPT has become the fastest growing technology in history, reaching 1 million users in the first 5 days of its launch and 100 million users in the first months. The chatbot reportedly reached 2 billion users after just six months. Estimates suggest it has reached 3.4 billion users globally by the end of 2023.
ChatGPT is predicted to will generate revenues of $1 billion in 2024. But she doesn’t stop there. The generative artificial intelligence market is currently growing at 42% and could reach $1.3 trillion by 2032, according to Bloomberg Intelligence estimates. Most of the revenue growth in generative AI, estimated at $247 billion by 2032, will come from demand for the infrastructure needed to train AI models.
Additionally, estimates suggest that the AI-assisted digital advertising business could reach $192 billion in annual revenue by 2032, while revenue from AI servers could reach $134 billion. Given these immense capabilities, as well as AI’s ability to learn and solve human-like problems through (among other things) advanced forms of computer processing, the revenue-generating potential is immense.
As for Microsoft, it is already monetizing artificial intelligence and launched Copilot, which leverages artificial intelligence to improve its productivity software suite. Copilot is already used by 40% of Fortune 100 companies, and more than 37,000 organizations have signed up for Copilot for Business. Microsoft 365 Copilot is priced at $30 per month, and some analysts estimate that at $30 per user per month, Copilot could boost Microsoft’s fiscal 2025 revenue by up to $9 billion.
These optimistic estimates may have some credibility, especially after the company’s first-quarter 2024 earnings results, which showed better-than-expected growth in its Azure cloud unit.
Lastly, estimates suggest that Microsoft’s AI prospects could receive a 33% boost in the coming quarters. In other words, Even as Microsoft stock sits at all-time highs as the world’s most valuable company, there’s still plenty of value to be discovered with its AI-powered approach.
Source: Ambito
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