Microsoft stock outlook: Jefferies sees upside to $400 a share
Microsoft Corp (NASDAQ: MSFT) is in focus today after a Jefferies analyst named it a top pick to bet on artificial intelligence.
Microsoft stock has a 25% upside
Brent Thill recommended buying Microsoft stock in his research note this morning that said the tech behemoth could climb all the way up to $400 a share – about a 25% upside from here.
The analyst is bullish on the Nasdaq-listed firm primarily for continued efforts that it has made in recent years to expand its footprint in artificial intelligence.
Microsoft has taken pole position in what is likely to be a decade-long industry evolution. Amazon won round 1 of cloud wars. Microsoft could be the winner of round 2.
The news arrives about a month after MSFT reported its financial results for the third quarter that handily topped Street estimates as Invezz reported here.
ChatGPT is a boon for Microsoft stock
Microsoft won the spotlight in artificial intelligence late last year when it announced a multi-billion-dollar investment in ChatGPT.
According to Jefferies’ Thill, though, the Redmond-headquartered firm had been quietly building its place in AI since before that. His research note reads:
MSFT has been working to position itself as the AI company and AI cloud for some time, starting with GitHub Copilot and continuing with OpenAI investments/recent AI related announcements.
In its latest reported quarter, the multinational saw a 13% growth in “Search” – suggesting that a ChatGPT integrated Bing was sitting well with users. Microsoft stock currently pays a dividend yield of close to 1.0%.
The post Microsoft stock outlook: Jefferies sees upside to $400 a share appeared first on Invezz.