MS Market Capitalization Exceeds 3 Trillion: AI Cloud Soaring With Both Wings

Microsoft’s MS market capitalization exceeds 3 trillion, AI cloud soaring with both wings.

Microsoft (MS) market capitalization exceeded 3 trillion (approximately 3,996 trillion won) on the 24th (local time). MS, which is evaluated as the most advanced company in monetizing artificial intelligence (AI), is soaring based on both cloud and AI wings.

The second member of the 3 trillion-dollar club

According to the Wall Street Journal (WSJ), Microsoft’s market cap exceeded $3 trillion during the day. Microsoft also joined the $3 trillion market capitalization club that Apple first opened last year. After exceeding $1 billion in market capitalization in 1986, Microsoft broke through $1 trillion in 2019, which is 10 times that amount, and two years later, in 2021, it recorded a market cap of $2 trillion. This year, three years after hitting $2 trillion in market capitalization, it finally reached $3 trillion. Unlike Apple, which has been struggling to recover from a slump after opening with a market cap of $3 trillion last year, Microsoft has been on an upward trend since late last year.

AI and Cloud Two Wings

There are two main backgrounds. First of all, its strength is that it stands out in the cloud computing sector. MS is the second-largest cloud company in market share after Amazon Web Services (AWS), but its market share has been rapidly increasing recently.

Unlike Alphabet’s Google Cloud, which is in third place with slow growth, and Amazon, which is first place and its market share is falling, Microsoft is increasing its market share by appropriately utilizing generative AI.

MS, the largest partner of Open AI, which caused an AI sensation around the world by announcing ChatGPT-3 at the end of 2022, is overwhelming its competitors by utilizing Open AI technology and securing a new growth engine called AI.

Size of 200 S&P 500 companies combined

The market capitalization of $3 trillion is equivalent to the market capitalization of the bottom 200 companies included in the Standard & Poor’s (S&P) 500 index, which consists of 500 large companies. At the beginning of the year, Microsoft surpassed Apple and became the number-one company by market capitalization. Apple opened the door to a market capitalization of $3 trillion in June last year, which no other company had ever achieved, but has been struggling since then amid concerns about slowing sales.

5th largest economy in the world

Its market capitalization of $3 trillion ranks fifth in the world based on gross domestic product (GDP). This means that Microsoft’s market capitalization is greater than the GDP of the UK and France, which are ranked 5th and 7th, respectively, based on GDP.

According to the World Bank (WB), the GDP of Germany, the world’s fourth-largest economy, last year was $3.85 trillion, and the GDP of the United Kingdom, the fifth-largest economy, was $2.67 trillion.

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