Key points:
- 19% upside predicted for Microsoft’s stock
- Microsoft’s price target increased to $500 from $475
Microsoft Corp. is anticipated to experience further growth due to the increasing use of Artificial Intelligence (AI). A 19% upside is predicted for the company’s stock, attributed to the transformative monetization of the Copilot AI system and recent positive AI customer checks. These factors are projected to drive significant momentum in the next six to 12 months.
The stock is believed to not yet fully reflect the upcoming wave of cloud and AI growth. The rising use of AI in enterprise is expected to lead to an increase in AI budget allocation in 2024/2025. Consistently strong performance with Microsoft customers is anticipated to contribute an additional $25 billion to $30 billion to the company’s topline by fiscal 2025.
Microsoft’s price target has been increased to $500 from $475 by Wedbush, reflecting the transformative effect from the monetization potential of the firm’s Copilot AI system. The potential of AI to alter the cloud growth trajectory in Redmond over the next few years is expected.
The accelerating adoption for generative AI and Copilot is enhancing the deal flow for Microsoft’s Azure cloud services. Major momentum is expected in the next six to 12 months. It is believed that 70% of the tech firm’s installed base will be on AI-driven functionality for enterprise and commercial purposes, an increase from the previous 60% estimate.
