Tech giants’ market capitalization soars: ‘washed moment for AI revolution’
With all the buzz AI has been generating since last year, the digital landscape is currently being shaped by this tech revolution with unprecedented developments taking place in the blink of an eye. AI has now seamlessly blended itself into our daily lives, fundamentally altering the way we work, communicate, and interact with the world around us.
Most companies have been adopting AI as defining strategy for business growth. These companies across all industries are either already integrating AI, using it for everything from advanced data analytics to decision-making support, or beginning to explore ways to start. AI is no longer just a tech trend—it’s a competitive edge, whether it’s streamlining operations, increasing revenue, or boosting customer engagement.
US tech giants Meta and Microsoft have smashed market expectations with performance analysts are hailing as a ‘watershed moment’ in the artificial intelligence revolution. Microsoft became the third company to surpass $4 trillion in market capitalization as its shares soared in response to a fourth-quarter profit of $34.3 billion, up 24% year-on-year, driven by growth in its Azure cloud business.
Azure revenues soared 34% to surpass $75 billion over one year, Microsoft said, as it forecast double-digit growth for the next 12 months. And Microsoft forecast its largest ever planned capital expenditure at $30 billion for the first quarter to meet soaring AI demand. It follows the group’s multibillion-dollar bet on OpenAI, and has helped fuel the stock to more than double its value since ChatGPT’s late-2022 debut.
Microsoft shares jumped more than 9% overnight in response to a peak of $561.28 per share. They have added almost 30% over the last year (2024). Gerrit Smit, lead portfolio manager of the Stonehage Fleming Global Best Ideas Equity fund, said: “Microsoft has proven with its results that it is the preferred technology stock to own to sustainably participate in the high growth of the global fourth industrial revolution.”
Meanwhile, shares in Facebook’s parent company Meta soared 12.2% to trade at $781.14 per share by mid-afternoon on Thursday (July 31). It came as the social media giant crushed analysts’ sales and profit targets, even as it poured billions of dollars into AI. Higher advertising and a growing user base on its social media platforms drove profits 36% higher to $18.34 billion for its second quarter as revenues soared 22%.
Analysts at Wedbush described Microsoft and Meta’s “eye-popping” results as a “washed moment for the AI revolution” that will be “remembered in the market for many years.” Nvidia, Apple and now Microsoft – have surpassed a $4 trillion market capitalization.
Reference: ‘Watershed moment for AI revolution’: Microsoft blows past $4tn valuation
Analysts at Wedbush described Microsoft and Meta’s “eye-popping” results as a “washed moment for the AI revolution” that will be “remembered in the market for many years.” Nvidia, Apple and now Microsoft – have surpassed a $4 trillion market capitalization.
Reference: ‘Watershed moment for AI revolution’: Microsoft blows past $4tn valuation
