Microsoft (MSFT) is gaining momentum in the generative artificial intelligence (AI) market, leading Wall Street analysts to predict further growth for the tech giant in 2024. MSFT stock is currently on an upward trend, approaching a buy point from its flat base pattern.
Recent reports show that Microsoft’s stock climbed 1.7% to 382.15 in recent trades. It has also successfully cleared a downward sloping trendline, indicating positive movement. MSFT stock is currently in a flat base pattern, with a buy point set at 384.30.
One of the key factors contributing to Microsoft’s success in the AI market is its strategic investment in OpenAI. Having invested $10 billion in the startup, Microsoft has gained a head start in the generative AI market. OpenAI’s ChatGPT chatbot has played a significant role in promoting the use of generative AI technology.
Microsoft has been integrating AI into its consumer and enterprise tech portfolio, showcasing its commitment to innovation. The company recently announced the addition of an AI key to its Windows PC keyboard, launching its AI assistant feature, Copilot. This move marks the first major update to the keyboard in three decades.
Furthermore, Microsoft has made Copilot services available within its enterprise Office suite of apps, utilizing generative AI to automate tasks in software like Word and Excel. This approach has proven successful in boosting sales for Microsoft’s Azure cloud-computing business.
Wall Street analysts have expressed confidence in Microsoft’s AI initiatives, with Jefferies analyst Brent Thill naming Microsoft a top pick for 2024. Thill believes that gen AI applications will accelerate growth for Azure, while the introduction of AI PCs could lead to a refresh cycle for personal computers.
Despite the positive outlook, Microsoft faces challenges ahead. The European Union is considering a review of Microsoft’s OpenAI investment under its merger regulations, while the company is also involved in a copyright infringement lawsuit filed by the New York Times.
The expectation for the fiscal second quarter earnings report, which is projected to show a 19% year-over-year earnings increase, will provide further insight into Microsoft’s performance. Analysts predict earnings of $2.76 per share and sales of $61 billion.
As we look ahead, Microsoft continues to be a strong contender in the AI market, with its strategic investments and innovations positioning it well for future growth.
The source of the article is from the blog krama.net