Microsoft (NASDAQ:MSFT) shares climbed to a record Thursday after analysts at JPMorgan Chase touted the software maker’s growth prospects in artificial intelligence.
The stock rose 3.2% to close at $348.10, topping its prior all-time high reached in November 2021, the same month the Nasdaq peaked. U.S. indexes enjoyed a broad rally, following the Federal Reserve’s announcement Wednesday that it would hold off on increasing interest rates.
AI has been a hot topic all year, after Microsoft-backed OpenAI in November released the ChatGPT chatbot, which quickly went viral. Tech companies have rushed to embed the technology into products and features and have boasted their ability to use AI to drive cost savings as recession concerns persist.
Microsoft is a major beneficiary of the rise of ChatGPT and tangential products. On top of its hefty investment in OpenAI, the company provides the underlying computing power. Microsoft also has an exclusive license on OpenAI’s models, including the GPT-4 large language model that can spit out natural-sounding words in response to a human’s text input.
Microsoft has incorporated OpenAI tools into its Bing search engine and even the Windows operating system. At the company’s event in February to announce its Bing Chatbot, Microsoft CEO Satya Nadella said “it’s an exciting time in tech.”
Investors want to see what it all means for Microsoft’s earnings and revenue.
MSFT shares came down from that Thursday peak by $1.70 to $346.40.
