Wedbush Securities analyst Dan Ives has raised the price target for Microsoft Corp (MSFT) from $500 to $550, citing positive AI customer feedback and the increasing monetization of Copilot and Azure.
Ives announced the price target increase, emphasizing the growing interest in Microsoft’s AI offerings and the imminent monetization of Azure, a cloud computing service, as key factors for the bullish outlook. He stated, ‘We are raising our price target on Microsoft from $500 to $550 reflecting incrementally bullish recent AI customer checks with a tidal wave of Copilot and Azure monetization now on the doorstep for MSFT. We have seen AI deal conversions for the enterprise accelerating.’
Microsoft stock has shown significant growth, gaining over 29% in the last 12 months. Investors interested in exposure to the stock can consider Vanguard Total Stock Market ETF (VTI) and SPDR Select Sector Fund – Technology (XLK).
Microsoft’s advancements in the AI and cloud computing sectors have been noteworthy. The company recently announced a $7.16 billion investment in constructing new data centers in Aragon, Spain, over the next decade, enhancing its cloud infrastructure and Azure services.
Despite a setback with its AI feature, Recall, Microsoft remains committed to AI innovation. CEO Satya Nadella has been driving the company’s AI strategy, making substantial investments and partnerships. Microsoft’s collaboration with MediaTek to develop an Arm-based PC chip aims to challenge Intel’s market dominance, aligning with the company’s focus on AI applications and potentially strengthening its position in the AI and cloud computing markets.
Microsoft Corp. closed at $442.57, up 0.22% on Friday. In after-hours trading, it dipped 0.036%. Year to date, the stock has gained 19.33%.
