Microsoft Stock: Headed to $400?
The hype surrounding AI, thanks to OpenAI's ChatGPT, has likely been one of the main factors beyond (NASDAQ: MSFT) stock's 33% gain this year. The company has jumped on the bandwagon in full force, making a handful of AI-related announcements this year, including the unveiling of new AI-based features for its search engine, internet browser, and productivity suite. Investors have cheered these moves, along with the company's better-than-expected fiscal third-quarter results and management's expectations for increased demand in an era in which AI helps fuel customer transformations.
Despite Microsoft's strong business performance and the strides it's making in AI, the stock's mouthwatering returns in 2023 should be scrutinized. Is Wall Street too optimistic? One analyst doesn't think so. Jefferies analyst Brent Thill just upped his 12-month price target for the stock from $350 to $400. He thinks the company is positioned exceptionally well for AI, thanks to its diverse and differentiated offerings that could benefit from it.
"Overall, we see the best-positioned groups to include hyperscalers, other enablers and data clouds, and large, differentiated platforms," said Thill in a note to analysts on Tuesday. In other words, he thinks differentiated and scaled tech companies like Microsoft and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are well-positioned to benefit from the possibilities of artificial intelligence. With this in mind, the analyst boosted his price target on both stocks and reiterated buy ratings.
Source Fool.com
Microsoft Corp. Stock
The stock is one of the favorites of our community with 115 Buy predictions and 3 Sell predictions.
With a target price of 424 € there is a slightly positive potential of 15.36% for Microsoft Corp. compared to the current price of 367.55 €.
