Microsoft (MSFT) stocks are over $500, up 5.9% over the past 30 days. Analysts previously mixed earlier this year are raising the company’s stock forecasts. Over the past few months, Windows developers have acquired AI-first initiatives and have dropped out of work to automate tasks with artificial intelligence technology. Investors seem to think these moves are positive and have recently sent MSFT stock price forecasts high.
Melius Research analyst Ben Reitzes has repeatedly rated his purchases on Microsoft Stock, increasing his MSFT target from $520 to $595. The stock is currently trading just over $502. Analysts say the software giant will benefit as artificial intelligence applications will encourage the use of more cloud infrastructure.
“The demand for AI-driven solutions should continue to drive increased infrastructure capacity as companies like Microsoft, Amazon, Google and Oracle have invested heavily in AI calculations,” Reitzes said in a client’s note. Thanks to its investment in AI, Amazon and Google’s parent alphabets, an epic stock of seven shares, are also making profits this year despite bearish market conditions. Last month, AMZN rose 6%, while GOOGL rose 4% over the same period.
Microsoft (MSFT) benefits from the Openai partnership
Additionally, Reitzes commented on the mixed relationship between Microsoft and ChatGPT developer Openai. “In the long run, there are concerns that Openai and Microsoft are doomed to increase conflicts of interest, but this agreement appears to be beneficial to Microsoft in general,” Reitzes said. “Even if Openai wanted Microsoft to own less than 49%, Redmond owns a huge portion of what could, no matter what, be a trillion dollar entity in Openai.”
At press time, Microsoft (MSFT) is trading above the 200-day simple moving average near the top of the 52-week range. The company’s stock is being valued as a strong purchase by Wall Street analysts, and the consensus price target suggests potential benefits. Microsoft’s investment in AI is seen as delivering solid returns and successfully placing the company for future growth in the AI innovation cycle. As the company continues to strengthen its AI capabilities and cloud offering, it is a key player in the technology industry and the biggest choice among the MAG-7 stocks.
