“Apple and Microsoft have been battling for years”, according to Jeff Christian, CEO & Founder of the executive search firm, Christian & Timbers. “At first, it was a battle of wits and talent between Steve Jobs and Bill Gates. I had just finished helping Apple build Pink, their next generation OS, when Microsoft recruited the entire team and stole the technology that became Windows. Today, Microsoft is battling Apple again to become the AI giant and join the $3 Trillion Club.”
Ives' prophecy relies heavily on the surging wave of Artificial Intelligence (AI). "With AI the next step... Microsoft should join Apple in the exclusive $3 trillion club by early 2024,” he stated. The booming AI revolution is set to fast-track Microsoft into this rarefied circle, given its heavy investments in OpenAI, the creative force behind ChatGPT.
A significant part of Microsoft's tryst with AI aligns with their Azure cloud business. As AI adoption explodes, more firms are turning to Azure for its superior server-intensive capabilities. “Notably, it's not just about technology but also talent acquisition and who can capture or steal the top AI architects, developers, and scientists that make up the core of new innovation.” Christian continues, “We are currently seeing every technology VC firm rapidly chasing not just the newest AI start-up but the best Data Scientists and Machine Learning Engineers from companies like OpenAI, Google, and Microsoft.”
Despite its colossal size, Microsoft's AI spending could see substantial acceleration. As Ives noted, "the monetization opportunities around deploying AI and ChatGPT in the cloud is a transformational opportunity across the industry with Redmond in the driver's seat." He goes on to illustrate how every $100 spent on Azure could potentially see an extra $35-$40 of AI spending.
This promising outlook has already had a positive impact on Microsoft's stocks. Shares have rocketed about 41% year-to-date, nudging the tech giant's market capitalization to hover around $2.5 trillion. “With a glowing outperform rating and a price target of $375 per share, Microsoft's journey to the $3 trillion club seems more a matter of 'when', not 'if'. As the AI revolution unfolds, we may soon find that the $3 trillion club isn't as exclusive as we once thought”.
The AI Boom: Microsoft's Golden Ticket to the $3 Trillion Club
3 Trillion Dollar Club" - an elite league of business titans is about to get a new member, according to Wedbush analyst Dan Ives. Apple's recent ascent into this stratosphere of financial prowess saw them become the first ever company to wrap a trading day with a market value of $3 trillion. But, as Ives puts it, Apple's "lonely club" is set to welcome its next entrant - Microsoft.
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