US Stock Market Leader Change: Microsoft Surpasses $3 Trillion
‘Will the US stock market leader change?’ Microsoft surpasses $3 trillion in market capitalization based on the closing price. Surpasses Apple and takes first place in market cap… ‘Obesity treatment’ Eli Lilly surpasses Tesla On the 25th (local time), Microsoft (MS) surpassed $3 trillion (approximately 4.18 trillion won) in market capitalization for the second time in history, becoming the world’s most expensive company.
According to the US daily Wall Street Journal, Microsoft closed at $404.87, up 0.6% from the previous day. MS surpassed $3 trillion at one point during the trading session on the 24th, the previous day, but later closed in a downward trend and fell below $3 trillion as of the closing price. Accordingly, MS’s market capitalization as of the closing price recorded $3.09 trillion (approximately 4029 trillion won), surpassing Apple’s $3.02 trillion.
Thanks to the continued influence of the iPhone, Apple became the first company to exceed $3 trillion in market capitalization in June of last year and lost the number one position in the world’s market capitalization to Microsoft at the beginning of this month but regained it again today. Apple’s stock price has shown a slump compared to other big tech companies this year, with low sales and lagging behind in AI competition.
Microsoft ‘s leap forward is due to the bold innovation of CEO Satya Nadella, who transformed the company from an ‘old-fashioned’ company that lagged behind competition with other big tech companies into a company leading the artificial intelligence (AI) revolution. Although it is an unproven non-profit startup, he has shown excellent management skills by partnering with Open AI, a next-generation AI pioneer, and quickly incorporating the startup’s technology into Microsoft ‘s major products.
Thanks to his quick management decisions, MS has emerged as a de facto leader in the AI field, which is expected to develop rapidly and reorganize the high-tech industry. Microsoft is the largest investor in Open AI, which became the epicenter of the AI craze with the launch of Chat GPT in November 2022. Over the past five years, we have invested $13 billion (approximately KRW 17.4 trillion) in Open AI several times, securing a stake equivalent to 49% of the profits of the Open AI commercial division, and open AI learned and hosted on our cloud computing service Azure.
You also have access to the latest AI models. In addition, the company increased its market value by integrating open AI technology into its main products such as Word and Outlook. In fact, Microsoft ‘s stock price rose more than 55% last year, outpacing the Nasdaq index, which rose about 45%. Daniel Morgan, senior portfolio manager at Synovus Trust, an asset management company that owns Microsoft stock, said, ” Microsoft is ahead of Alphabet and Meta thanks to its relationship with open AI, and has a very high potential to become a software leader in the AI field.
” Meanwhile, Eli Lilly, the pharmaceutical company behind the obesity treatment drug ‘Maunjaro’, rose to 9th place in market capitalization, surpassing electric car company Tesla, whose stock price plunged more than 10% on the day due to poor performance forecasts. Tesla’s stock price plummeted 12.13% that day, evaporating about $80 billion (about 107 trillion won) from its market capitalization, shrinking its market capitalization to $580.6 billion (about 777 trillion won).
Eli Lilly also fell slightly (0.96%) on this day, but its market capitalization exceeded Tesla’s at $595.8 billion (about 798 trillion won). “The market tends to favor broad trends, and at one time one of those trends was electric vehicles and Tesla,” said Citiv Sosnik, chief strategist at stock brokerage firm Interactive Brokers. “The trends that are currently attracting investors’ attention are artificial intelligence and “It is a GLP-1 (glucagon-like peptide -1 )-based obesity treatment agent,” he said.
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