Microsoft briefly achieved a market capitalization exceeding $3 trillion during intraday trading on Wednesday, reflecting a more than 1% growth, with shares reaching approximately $404 each. 

However, CNBC reported that the stock saw a slight retraction by the close of the trading day and settled at $401.5 per share.

Microsoft Exceeds $3 Trillion in Market Cap

This achievement comes almost two weeks after Microsoft beat Apple as the world's most valuable public company on January 12. 

While Microsoft briefly claimed the top spot, Apple has reclaimed its position, with a market cap closing at around $3.01 trillion on Wednesday. 

According to CNBC, Microsoft's shares have risen by over 7% year-to-date as investors remain optimistic regarding the company's strategic investments in artificial intelligence (AI). The technology giant has been at the forefront of leveraging AI technologies.

READ ALSO: Microsoft Launches Copilot AI Assistant for Small Businesses and Consumers 

Optimistic Outlook on Microsoft

Analysts from Citi expect Microsoft to deliver strong results in its upcoming fiscal second-quarter earnings report, attributing this optimism in part to the company's prominent role in generative AI. 

The analysts not only raised their estimates and target price but also mentioned their buy rating on the stock again in a note on Wednesday.

In a note on Tuesday, Morgan Stanley analysts echoed similar optimistic views as they believed that Microsoft's positioning and contributions to generative AI are getting stronger.

They revised their price target to $450 from $415, underscoring their confidence in the company's potential to exceed consensus estimates.

Microsoft's strategic positioning in the AI sector has been a focal point for analysts and investors as the company continues to make significant strides in this cutting-edge technology. 

Microsoft is set to report its fiscal second-quarter earnings on January 30.

READ MORE: Microsoft Surpasses Apple as World's Most Valuable Public Company