Microsoft's capital rises to $4 trillion

Microsoft's capital may grow to $4 trillion in the near future. Since the beginning of this year, the company's shares have risen by more than 19%. At this stage, Microsoft's capitalization is $3.782 trillion. Such growth seems strange to some investors, and they doubt that the company will be able to grow to $4 trillion in a game where AI wins.

Top companies on the market

NVIDIA is currently the leader with a capitalization of $4.195. Microsoft is in second place with $3.782, and Apple closes the top three.

The significant growth of Microsoft can be attributed to the company's strategy of focusing on cloud technologies. NVIDIA supplies hardware for data centers, while Microsoft provides cloud infrastructure through Azure. According to some sources, even Apple uses OpenAI and Azure models.

The company's stable income is also significantly influenced by subscription revenue. There are various options for users, ranging from Microsoft 365 to Xbox Game Pass.

According to some analysts, the company's shares are very overvalued. For example, some Microsoft products (Surface, Xbox) no longer have such a dynamic development, while others are rarely updated. Such decisions create certain risks and may also be associated with a wave of layoffs in 2024.

In addition, the focus on partnership with OpenAI is a great option that is currently having a certain impact on the growth of shares, but cloud solutions cannot be considered a guarantee of success. Many competitors are working more actively on their own AI models and are actively focused on cloud technologies.

Despite the existing criticism, Microsoft shows that the B2B model remains effective, and they can adapt and change depending on new realities.