Microsoft is currently valued at 2.13 trillion USD.
Let's check if a possible future resounding success of ChatGPT is incorporated in Microsoft's current market capitalization.
Alphabet Inc, Google search engine's owner market capitalization is currently circa 1.4 trillion USD.
So 'back of the napkin' calculations show that if one assumes that Google search is responsible for 70 % or circa 1 trillion USD of Alphabet's market capitalization and, let's assume, ChatGPT takes away half of Google's advertisement revenue business, this would increase Microsoft's intrinsic value by 500 billion USD.
Actually in the past several months, Microsoft's market capitalization rose by approximately 25 % or circa 500 billion USD.
Apparently many people 'anticipated' ChatGPT's success.
I would actually argue that Microsoft's intrinsic value is 1.7 trillion USD, even assuming ChatGPT makes big inroads into search.
Alphabet Inc, Google's owner intrinsic worth, or 'fair value', according to Wolfteam Ltd. estimates is 1 trillion USD.
Basically, technology stocks in the US are still overvalued by a significant margin, Wolfteam estimates.
www.wolfteamedge.com
Disclaimer: The above blog post is not a recommendation or solicitation to buy or sell securities or derivatives.
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