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Microsoft Touches $3 Trillion: How AI is Fuelling the Tech Giant's Enormous Growth

Rosie Mallory
02 February 2024

According to Bloomberg, Microsoft's market valuation on the stock market briefly touched US$3 trillion in January 2024, becoming the second company ever to hit this benchmark. [1]  (Apple, of course, was the first.)

The closing share price of US$2.99 trillion is still a record high for the software giant, and like so many other milestones in tech right now, AI gets the credit.

Microsoft is fast becoming an AI powerhouse. Fuelled by CEO Satya Nadella's strategic partnerships, Microsoft’s AI strategy has positioned it as a major player in the application and monetization of artificial intelligence. The growing strength of Microsoft as a massively valuable brand is reflected in Brand Finance’s latest Global 500 ranking; Microsoft jumped two spots to become the second most valuable brand in the world, after an enormous 78% increase in brand value to USD340.4 billion.

As well as driving substantial revenue growth, Brand Finance data suggests that Microsoft’s AI strategy has enhanced consumer perceptions of the brand as a leading technology innovator. According to our original market research, consumers scored Microsoft highly on key performance metrics including modernity, innovation, and trustworthiness. This positive brand perception aligns with and reinforces Microsoft's broader mission to empower people worldwide to harness the benefits of AI. By integrating user-friendly AI tools like Copilot across its popular software platforms, Microsoft is being perceived as a leader in making AI accessible and useful, and Wall Street shares this optimism - Bloomberg projects a 15% revenue increase in 2024, and more than 90% of analysts tracked by Bloomberg recommending buying shares. [2]

Brand Finance previously recognised Microsoft as the world’s most valuable Global B2B brand in last year’s Global Most Valuable B2B Brands Index, with a B2B value of US$137.5 billion, representing 72% of the giant’s total brand value. Microsoft’s global brand recognition as tech leader is crucial in today’s B2B market, where businesses rely on Microsoft to deliver reliable cloud computing, enterprise solutions, and other critical B2B services to build and sustain long-lasting relationships.

According to Brand Finance’s Global Intangible Finance Tracker⁠™, Microsoft is also one of the most intangible businesses in the world, with around 95% of its value in intangible assets. By leaning into AI, Microsoft is on track to continue to generate massive intangible value through the creation of digital services, platforms, and an AI ecosystem that potentially strengthen the tech giant’s reputation as an innovative and enormously valuable brand.

To find out more about the drivers behind Microsoft’s growth, get in touch with our Tech expert at Brand Finance, Lorenzo Coruzzi, at [email protected]

References

[1] Vlastelica, R. (2024) Microsoft hits $3 trillion value, cementing strength of Ai Rally, Bloomberg.com. Microsoft Hits $3 Trillion Value, Cementing Strength of AI Rally - Bloomberg  

[2] Vlastelica, R. (2024)

About the Author

Rosie Mallory
Communications Executive
Brand Finance

Rosie joined the Brand Finance team in April 2023 as a Communications Executive. As well as assisting with a range of internal and external communications projects, she has a particular interest in writing on sectors including Cosmetics, Apparel, Tech and Sport.

Rosie gained a BA degree in English and French from the University of Nottingham in June 2022, having exercised her passion for languages across a range of cultural and linguistic modules, and completing a final dissertation in representations of feminism in 20th century French film.

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