Microsoft is making artificial intelligence one of its top priorities.
During its fiscal third-quarter earnings call, CEO Satya Nadella explained that “investing in the new AI wave” would remain a key focus for the software giant.
Microsoft announced in January a multibillion-dollar investment in OpenAI, the artificial intelligence lab that created ChatGPT. Since then, Microsoft has begun to incorporate AI technology, dubbed “Copilot,” into some of its well-known products including Word, PowerPoint and Excel.
The company expects AI will help drive revenue growth over time because it will improve its product offerings.
Fiscal third-quarter revenue grew 7% to $52.86 billion, beating analysts’ prediction of $51.02 billion, according to Refinitiv consensus estimates. Additionally, Microsoft reported earnings per share of $2.45, which surpassed the $2.23 analysts expected.
What this means for investors
Microsoft announced its fiscal third-quarter earnings report after the bell on Tuesday, April 25. The next day, the company’s share price increased by nearly 8% and ended the trading session at $295.37 per share. The momentum continued on Thursday, with Microsoft shares setting a 52-week high.
Here’s how much money you’d have as of April 26 if you had invested $1,000 into the company one, five and 10 years ago.
If you had invested $1,000 into Microsoft a year ago, your investment would be worth about $1,103 as of April 26, according to CNBC’s calculations.
If you had invested $1,000 into Microsoft five years ago, your investment would have more than tripled to $3,248 as of April 26, according to CNBC’s calculations.
And if you had put $1,000 into Microsoft a decade ago, it would have soared to $9,841 as of April 26, according to CNBC’s calculations.
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