Microsoft has been valued at more than $3 trillion (€2.7 trillion), partly due to its investment in AI-based projects.
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Software giant, Microsoft, has surpassed a $3 trillion (€2.7 trillion) valuation, becoming the second company, after Apple, to ever reach this milestone.
The achievement follows the company opting to focus on incorporating artificial intelligence (AI) into its products, which has driven investor confidence.Microsoft's stocks increased by more than 1.45% on Wednesday in New York.
Last year, Microsoft, known as one of the 'magnificent seven' technology companies fueling the growth in US stock indexes, invested a substantial $10 billion (€9.2 billion) in various AI initiatives. This positioned Microsoft at the forefront of AI, surpassing younger competitors such as Google and Meta.
Addressing the opportunities that AI presents, Microsoft Vice Chair and President, Brad Smith, stated in a conference in Brussels last June that these possibilities can extend from healthcare to education.
"Pancreatic cancer remains one of the most life threatening cancers for people who get it almost entirely because it is so difficult to catch in its earliest stages. But this is where we're finding that AI can detect patterns that a human doctor finds difficult to see,"Smith said.
"It's not just better health care, it can be better education too.[...]I think it's very easy in the European Union or the United States or other places to sort of take for granted that we have easy access to doctors and teachers, and it's easy to forget that much of the world does not. This will reach people in ways that we cannot."
Among investments in AI-related innovations, Microsoft has incorporated an AI digital assistant named Copilot into its Edge web browser and Office software.
Additionally, Microsoft has recently announced a 10-year partnership with the UK telecoms company Vodafone, with the goal of assisting 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 also been advancing its efforts by developing its own AI-supporting chips, intensifying its competition with Amazon and Google to manage artificial intelligence tools for companies.
Apple, one of the major competitors of Microsoft, achieved the same $3 trillion milestone in June last year.
Since January, Microsoft shares have been in competition with Apple's for the title of the world's most valuable company, briefly surpassing the iPhone maker earlier this month.
At the end of this month, Microsoft is expected to release its financial results for the second quarter of fiscal year 2024.
FAQs
Software giant, Microsoft, has surpassed a $3 trillion (€2.7 trillion) valuation, becoming the second company, after Apple, to ever reach this milestone. The achievement follows the company opting to focus on incorporating artificial intelligence (AI) into its products, which has driven investor confidence.
Did Microsoft become the second company ever to top $3 trillion valuation? ›
Microsoft has joined the elite $3 trillion valuation club, following in the footsteps of Apple, solidifying its position as the second company ever to achieve this remarkable milestone.
Did Microsoft become the second ever $3 trillion dollar company after laying off 1900 people? ›
Apple previously became the first company to reach the milestone in December of last year. Microsoft has become the second company ever to achieve a $3 trillion market valuation, closing at the market cap for the first time today just after it laid of 1900 workers from its gaming divisions.
Has Microsoft crossed the $3 trillion threshold? ›
Microsoft crossed the $3 trillion market cap threshold for the first time on Wednesday, briefly stealing the title of "world's most valuable company" from its longtime rival, Apple. Microsoft's stock surged over 1% during intraday trading, hitting a peak of $405.63 per share, sending its market cap above $3 trillion.
Which companies are worth $3 trillion? ›
Trillion-dollar companies
- Apple (AAPL) Apple designs and makes a variety of consumer tech products and has one of the best known brands in the world. ...
- Microsoft (MSFT) ...
- Alphabet (GOOG and GOOGL) ...
- Amazon (AMZN) ...
- Meta Platforms (META) ...
- Nvidia (NVDA)
Microsoft Becomes Second Company Ever To Top $3 Trillion Valuation—How The Tech Titan Rode AI To Record Heights.
Is Microsoft the second most valuable company? ›
After a strong start to 2024, Microsoft (NASDAQ:MSFT) is the most valuable company in the world. It passed longtime rival Apple (NASDAQ:AAPL) in January and became just the second company to reach a market capitalization of $3 trillion. Seven of the largest companies have a market cap of at least $1 trillion.
Is any company worth 1 trillion dollars? ›
Next Trillion-Dollar Companies: Tesla (TSLA)
To be fair, Tesla's market cap hit $1 trillion in 2021 and again in 2022, so Musk and his team are used to high valuations.
How much is Apple worth in 2024? ›
Did Bill Gates have money to start Microsoft? ›
Gates did not start Microsoft with a loan from his parents, it was entirely bootstrapped financially. Paul Allen and Gates had saved up a small amount of money from contract work. Together they provided all of Microsoft's seed capital.
NEW YORK, Jan 24 (Reuters) - Microsoft's (MSFT. O) , opens new tab stock market value crossed the $3 trillion milestone for the first time on Wednesday, retaining its place as the world's second most valuable company, just behind Apple (AAPL.
Is Microsoft worth more than Apple? ›
Apple was the world's most valuable public company at the end of 2023 but is now worth an astounding $540 billion less than Microsoft — a gap equivalent to Tesla's entire market value.
How much of Microsoft does Bill Gates have? ›
Institutional investors are the majority owners of Microsoft, accounting for almost 70% of outstanding shares. Former CEO Steve Ballmer owns a 4% stake in Microsoft, more than its founder Bill Gates, who holds a 1.3% stake. Vanguard and Blackrock are the two largest Microsoft's institutional investors.
Is there a Trillionaire company? ›
Semiconductor company Nvidia became the latest company to cross the trillion dollar mark in June 2023, as investors bid up its shares in anticipation of a boom in artificial intelligence.
Did Microsoft hit $3 trillion market value second to Apple? ›
Software giant, Microsoft, has surpassed a $3 trillion (€2.7 trillion) valuation, becoming the second company, after Apple, to ever reach this milestone. The achievement follows the company opting to focus on incorporating artificial intelligence (AI) into its products, which has driven investor confidence.
Who is the richest company in the world? ›
When did Microsoft become the most valuable company? ›
Both Microsoft and Apple have been trading places for the most valuable public company for years now. Microsoft surpassed Apple's market cap in 2021, 2020, and 2018 before Apple once again regained its place at the top. Google also briefly took over Apple's market cap in 2016.
When did Microsoft become worth $1 trillion? ›
In April 2019, Microsoft reached a trillion-dollar market cap, becoming the third U.S. public company to be valued at over $1 trillion after Apple and Amazon, respectively. As of 2024, Microsoft has the third-highest global brand valuation.
Did Microsoft join Apple in the $3 trillion Club? ›
Microsoft became the second company in the world to reach a market value of $3 trillion. Microsoft has joined the elite club of companies with a $3 trillion market value, following closely behind Apple, solidifying its position as the world's second most valuable company.
What is the highest valuation of Microsoft? ›
Microsoft ended the week with a market capitalization of $3.125 trillion, the highest for any company ever. The company's market value topped the previous record set by Apple, which reached $3.09 trillion in July, according to Dow Jones Market Data.
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