Microsoft Corp. and Nvidia Corp., two major players in the field of artificial intelligence (AI), are experiencing significant growth as AI continues to drive this year’s tech rally.
Shares of Nvidia rose to $480.88 on Friday, reaching a high for the day, and were last seen at $463.15, reflecting a 0.7% increase. At the same time, Broadcom Inc. also hit an intraday high of $903.35 and was slightly up by less than 0.1%. Truist analyst William Stein believes that both chip makers have a promising future in the AI chip market, leading to positive industry feedback.
Nvidia and Broadcom are on track to achieve record closing highs, surpassing Thursday’s figures of $459.77 and $890.36, respectively.
Microsoft shares, initially reaching $351.43, came close to surpassing the current record closing high of $348.10, set on June 15. However, they settled for a 1.1% increase to $346.37. Another 1.6% gain is required for a new record closing high.
It is evident that Microsoft and Nvidia are leading the way in the AI chip market, capitalizing on the technological advancements and market opportunities. Their continued success positions them as key players in shaping the future of artificial intelligence.
Microsoft’s Rating Boosted on AI Enthusiasm
On Friday, UBS analyst Karl Keirstad upgraded Microsoft to a buy rating, accompanied by a higher price target of $400. The decision was based on growing enthusiasm for the company’s advancements in artificial intelligence (AI).
Earlier in the week, Microsoft gained significant traction in the market due to the expansion of its cybersecurity offerings. This move put pressure on pure-play cybersecurity vendors such as Palo Alto Networks Inc. and Zscaler Inc.
Despite this competition, Fortinet Inc. remains poised for a potential record close, with its most recent closing price being $78.32 on Tuesday. Like other cybersecurity providers, Fortinet has incorporated AI technologies to enhance its protection capabilities.
However, Microsoft is not without its own challenges. It is currently facing pressure to finalize its acquisition of Activision Blizzard Inc. by July 18. The Federal Trade Commission has expressed its intention to appeal a federal judge’s decision to allow the deal to proceed.
This surge of interest in AI stocks has drawn comparisons to historical market booms and busts, such as the PC and dot-com eras.