Microsoft Shares Hit Record Highs

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Microsoft Shares Hit Record Highs

Microsoft And Apple Shares Hit Record Highs

The shares of the top 5 tech companies, including Microsoft, Amazon, Apple, Meta, and Alphabet, gained a collective of 1.2% on Friday. All of these companies are valued at +$1 trillion, and thus, even an increase of 1.2% in stock prices means a lot.

The rally in the top 5 tech stocks have also helped the Nasdaq and the S&P 500 index as both are up by 0.5% and around 0.9%, respectively.

Microsoft Up By 24% In 2024

Experts believe that the rally seen in the tech stocks is driven by the recently released NFP report. The report showed a higher unemployment rate and thus paved the way for the upcoming rate cuts.

Rate cuts are bad news for the US bond yields and the US Dollar currency. However, it is a totally different ball game when it comes to the stock markets, as they actually thrive in low-rate environments.

Another reason for the recent rally in tech stocks is driven by the growth in the AI sector, which is also propelling the stocks of chip-making companies.

Microsoft shares trade around $467.56, with a gain of 24% since the start of the year 2024. And if we look at the past year's performance, the stock gained around 40%.

According to various analysts, Microsoft's price target is around $556.67, which means a 19% upside from the current levels.

Going forward, Microsoft will continue to secure more ground as it pushes ahead with its AI initiatives. Microsoft was one of the few companies which invested early in the AI and it seems to be paying back now as the company is now among the top AI players.

similar story is seen in Apple stocks, which clocked a new high of around $226 last week. In this year (2024) alone, Apple has gained 17% and around 30% in the last 3 months. If Apple can improve its sales in the Chinese region and refine its AI strategy, it could add more upside to its stock value.

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