Microsoft stock hit a record high on Thursday after executives predicted that the company could generate $10 billion or more in annual artificial intelligence (AI) revenue. The company’s stock rose 3.2% to close at $348.10, topping its previous all-time high of $345.61, which was reached in November 2021.
The bullish sentiment on Microsoft’s AI business was driven by comments from several executives, including CEO Satya Nadella. In an interview with CNBC, Nadella said that AI is “at the heart of everything we do” at Microsoft, and that the company is “seeing tremendous growth” in the AI market.
Nadella also pointed to Microsoft’s recent acquisition of AI startup Nuance Communications as evidence of the company’s commitment to AI. Nuance is a leading provider of speech recognition and natural language processing technology, and its acquisition will help Microsoft to accelerate its AI efforts.
In addition to Nadella, other Microsoft executives also expressed optimism about the company’s AI business. Kevin Scott, executive vice president of research and development, said that AI is “one of the most important areas of innovation” for Microsoft, and that the company is “investing heavily” in AI research and development.
Scott also noted that Microsoft is working with partners to bring AI to market. For example, the company is working with hospitals to develop AI-powered medical imaging tools, and it is working with financial institutions to develop AI-powered fraud detection tools.
The strong performance of Microsoft’s stock on Thursday is a sign that investors are bullish on the company’s AI business. Microsoft is well-positioned to capitalize on the growing demand for AI, and its AI business is expected to be a major driver of growth in the years to come.