Microsoft is making significant strides in the field of generative artificial intelligence, with analysts suggesting that the tech giant is on the brink of its ‘iPhone Moment.’ According to Wedbush analysts, Microsoft has a unique opportunity to revolutionize the cloud industry by leveraging AI and ChatGPT.

Wedbush analysts, including Dan Ives, have raised Microsoft’s price target to $550, maintaining an ‘outperform’ rating. The analysts attribute this increase to the growing adoption of Copilot and Azure among Microsoft customers, signaling a surge in AI deployments at an enterprise scale.

Describing this period as Microsoft’s ‘iPhone Moment,’ Wedbush highlights the transformative potential of AI in driving cloud growth for the company. They emphasize that Microsoft is well-positioned to capitalize on the monetization opportunities presented by AI and ChatGPT deployment in the cloud.

Compared to its cloud competitors like Amazon and Google, Wedbush believes that Microsoft holds a competitive edge in the AI space. The analysts predict that Copilot deployments could contribute approximately $25 billion to Microsoft’s revenue trajectory by fiscal year 2025.

While AI adoption is on the rise for Microsoft in fiscal year 2024, Wedbush anticipates that 2025 will be the pivotal year for AI growth within the company. Despite losing its title as the world’s most valuable company to Apple, Microsoft’s strategic focus on AI positions it as a key player in the evolving tech landscape.