Could This "Magnificent Seven" Stock Become the First $10 Trillion Company by 2035?

Core Viewpoint - The launch of Copilot + PC enhances Microsoft's growth narrative, positioning it for a potential $10 trillion market cap by 2035 [1][8]. Group 1: Product Launch and Features - Microsoft introduced Copilot + PC, a new lineup of AI-powered Windows PCs, with prices starting at $999 and availability from June 18 [1]. - Copilot is now available on nearly 225 million Windows 10 and Windows 11 PCs, doubling the previous quarter's figures [2]. - Copilot + PCs feature advanced silicon capable of over 40 trillion operations per second, all-day battery life, and access to sophisticated AI models [2]. Group 2: Market Demand and Adoption - The integration of AI in PCs supports demand for AI-powered chips and enhances user productivity [3]. - Adoption of AI-focused products is crucial to validate AI as a transformative technology rather than a passing trend [3]. Group 3: Financial Performance and Growth - Microsoft reported a 30% quarter-over-quarter increase in GitHub Copilot subscribers, reaching 1.8 million, and a 175% increase in Copilot Studio adoption [4][5]. - The Power Platform has over 330,000 organizations using it, with Power Apps growing over 40% year-over-year to over 25 million monthly active users [5]. Group 4: Financial Strength and Market Position - Microsoft has over $80 billion in cash and equivalents, providing a strong buffer against market downturns [6]. - The company generated $86.2 billion in trailing 12-month net income, significantly exceeding its dividend and buyback expenditures [7]. Group 5: Future Growth Potential - Microsoft needs a compound annual growth rate of 10.9% over the next 11 years to reach a $10 trillion market cap [8]. - If Microsoft achieves a 15% earnings CAGR, the stock price could reach $1,620, resulting in a market cap of over $12 trillion [9][10]. Group 6: Investment Outlook - Microsoft is positioned as a leading AI investment opportunity due to its proven track record, size, and growth potential [11]. - Strong adoption of AI products could lead to faster-than-expected growth, making it a medium risk/high potential reward investment [11].