Microsoft Stock Closes At All-Time High After Revealing New AI-Powered Platform

Topline

Microsoft share price closed at a record $359.49 on Tuesday following the company’s reveal of Microsoft 365 Copilot, an AI-powered version of the productivity platform—the latest tech company to enjoy an artificial intelligence-fueled boost.

Microsoft has one of several tech stocks that have significantly increased in the last month. … [+] (Photo by Tim Heitman/Getty Images for BIG3)

Getty Images for BIG3

Key Facts

Microsoft’s stock closed up nearly 4% Tuesday, reaching the highest value it has ever traded at and pushing the company’s market cap to $2.67 trillion.

The tech conglomerate’s positive stock performance was fueled by an announcement that the AI-powered Microsoft 365 Copilot would be offered for $30 a month for Microsoft 365 customers on different plans.

The Copilot subscription would be added on top of existing Microsoft 365 plans, which already range from $12.50 a month to $36 a month for each user.

The stock, which peaked at $366.30 Tuesday and hit an all-time high on June 15, has risen more than 6% in the last month.

Tangent

Microsoft is one of several tech companies experiencing record-setting stock prices in the wake of AI developments and investments. Nvidia, which produces chips used to power AI systems, also reached an all-time high Tuesday—when it closed up more than 2% at $474.94. The record comes less than two months after the company surged past a $1 trillion market cap, driven partly by optimism that the company’s chips could help fuel AI systems. Last month, software company Oracle recorded an all-time high stock price of $126.55 before later dropping slightly, benefiting from developments in AI that have led the company to invest in Cohere—a generative AI startup valued at more than $2 billion.

What To Watch For

Microsoft has not set a release date for the incoming AI software, which will enter a competitive market inhabited by the likes of Google, Salesforce and other tech juggernauts.

Key Background

Microsoft’s Copilot was announced in March as a Microsoft 365 integration that would help users with productivity and skills on apps such as Word, Excel, PowerPoint and more. Microsoft CEO Satya Nadella said in a statement that the AI addition would “fundamentally change the way we work and unlock a new wave of productivity growth.” Since the start of the year, Microsoft’s stock has increased nearly $120 per share, recovering from plummeting prices for it and other major tech companies last year and reaching well past Microsoft’s best stock performances ever—which were recorded in late 2021.