Microsoft’s stock reached a record high on Thursday following optimistic predictions from executives regarding the company’s potential revenue in artificial intelligence (AI). Analysts from JPMorgan Chase highlighted Microsoft’s growth prospects in AI, which has been a popular topic in the tech industry throughout the year. Microsoft has heavily invested in OpenAI, which released the ChatGPT chatbot in November 2021, leading to many companies incorporating AI into their products and features. Microsoft has exclusive rights to OpenAI’s models, including the GPT-4 language model. The company has incorporated OpenAI tools into its Bing search engine and Windows operating system. Microsoft’s finance chief, Amy Hood, expects AI services to contribute to a 26-27% year-over-year growth in constant currency for Azure cloud in the fiscal fourth quarter. Hood also predicts that the next-generation AI business will be the fastest-growing $10 billion business in Microsoft’s history. JPMorgan analysts raised their price target for Microsoft stock to $350 from $315 and praised Microsoft’s investments in AI. With a 46% rally this year, Microsoft has recovered all its losses from 2022. The excitement around AI has produced renewed bullishness in the tech industry, with the Nasdaq up 32% this year, double the gains in the S&P 500.