Microsoft’s stock price target has been raised by Wedbush Securities analyst Dan Ives from $500 to $550. This increase is due to positive feedback from customers regarding Microsoft’s AI technology and the upcoming monetization of Copilot and Azure. Ives shared the news of the price target increase, emphasizing the growing interest in Microsoft’s AI offerings and the imminent monetization of Azure, a cloud computing service.
Microsoft has been experiencing significant growth in the AI and cloud computing sectors. The company recently announced a substantial investment of $7.16 billion in building new data centers in Aragon, Spain over the next decade. This investment is expected to strengthen Microsoft’s cloud infrastructure and improve its Azure services.
Despite facing a setback with its AI feature, Recall, Microsoft remains dedicated to AI innovation. CEO Satya Nadella has been driving the company’s AI strategy by making significant investments and forming partnerships. Additionally, Microsoft’s collaboration with MediaTek to develop an Arm-based PC chip is poised to challenge Intel’s market dominance, aligning with the company’s focus on AI applications and potentially enhancing its position in the AI and cloud computing markets.
Investors interested in gaining exposure to Microsoft stock can consider options like Vanguard Total Stock Market ETF (VTI) and SPDR Select Sector Fund – Technology (XLK). Microsoft Corp. closed at $442.57 on Friday, showing a slight increase of 0.22%. In after-hours trading, the stock dipped by 0.036%. Year to date, Microsoft has gained 19.33%.
Overall, Microsoft’s positive outlook in the AI and cloud computing sectors, coupled with its strategic investments and partnerships, indicate a promising future for the tech giant. As the company continues to innovate and expand its offerings, investors and analysts remain optimistic about its growth potential in the market.