Microsoft has achieved an all-time high market valuation of nearly $2.6 trillion.

Microsoft Corp. experienced a significant surge in its stock value, reaching a new record high at the end of trading on Thursday. This boost can be attributed to the prevailing optimism surrounding artificial intelligence (AI) and its potential. As a result, the technology giant’s market capitalization soared to an unprecedented $2.59 trillion. Microsoft is widely recognised as a frontrunner in the software industry’s AI adoption, primarily due to its substantial investment in OpenAI, a San Francisco-based startup renowned for its popular chatbot, ChatGPT.

In a strategic move to challenge the dominance of Google, Microsoft recently introduced a range of AI enhancements, including the integration of ChatGPT into “Azure cloud services” and its search engine, Bing. This development further solidified Microsoft’s reputation as an AI innovator and sparked increased investor interest.

Closing at $348.10 per share, Microsoft’s stocks witnessed a notable 3.2% increase on Thursday. Year-to-date, the stock has risen by over 45%, surpassing its previous record close of $343.11 on November 19, 2021. Moreover, on November 22, 2021, the stock reached an intraday record high of $349.67.

Alongside Microsoft, Apple Inc. also achieved a record-high closing price of $186.01 on Thursday, while graphics chipmaker Nvidia saw its shares reach a fresh intraday record of $432.89.

JPMorgan analysts earlier in the day raised their price target for Microsoft’s stock, emphasising the role of AI in driving demand for the company’s products. Out of the 53 analysts covering Microsoft, 44 recommended purchasing its shares, with a median price target of $340, according to “Refinitiv data.”

JPMorgan analysts expressed their confidence in the positive impact of generative AI, highlighting its potential to revitalise key software franchises. This sentiment further supports the prevailing optimism surrounding Microsoft and its AI initiatives.