Microsoft's AI growth driving revenue growth, potential for significant returns in the long term

From Nasdaq:

Microsoft (NASDAQ: MSFT) went public in 1986 at a valuation of $777 million, now valued at $3.1 trillion. Holding stock since IPO would yield a 402,731% gain – turning $250 into $1.1 million, compared to $5,630 in the S&P 500. With AI driving its growth, cloud computing and gaming also play key roles.Image source: Getty Images

With 49 years of innovation, Microsoft’s Windows OS has 1.6 billion active users. Microsoft 365, including Word and Excel, serves over 1 billion people. Xbox, Surface hardware, and cloud computing with Azure are key segments. AI investment in OpenAI’s GPT-4 models is expected to drive future growth.

Cloud computing is Microsoft’s largest revenue segment, offering Azure’s digital services for business. Microsoft’s AI products like Copilot are transforming productivity in applications like Word and Excel, and Azure AI customers are growing steadily. Microsoft’s revenue forecast for fiscal 2024 is $244.3 billion, driven by AI and cloud computing growth.

Investing in Microsoft stock today could yield significant returns if annual revenue grows by 8.4% to reach $1.2 trillion by 2044. Artificial intelligence, forecasted to add trillions to the global economy, poses a gigantic opportunity for Microsoft’s future revenue growth. Despite its size, Microsoft could still deliver returns to investors over the long term.



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