From Nasdaq:

The rise of artificial intelligence (AI) continues to captivate as Microsoft CEO Satya Nadella highlights its transformative impact in a recent shareholder letter. McKinsey & Company estimates generative AI could generate $2.6 to $4.4 trillion annually, with Microsoft leading the charge.

Microsoft’s innovative approach to generative AI includes tools like Copilot, a handy digital assistant improving productivity and quality of work. Initial user surveys show a significant boost in productivity, with Copilot for Sales and Copilot for Finance among the latest additions, integrating with popular platforms like ServiceNow and Salesforce.

Investors are taking note of Microsoft’s AI prowess, with projections suggesting generative AI efforts could drive up to $143 billion in incremental revenue by 2027. Recent results show a surge in cloud services revenue, fueled in part by the success of Copilot, showcasing the halo effect of AI on Microsoft’s Azure platform.

Despite impressive stock gains, Microsoft remains undervalued relative to the potential of cloud computing and AI. With opportunities in generative AI and Copilot drawing attention, Microsoft stock could offer substantial returns in the future. The Motley Fool team has identified Microsoft as one of the 10 best stocks to buy right now, signaling continued growth potential for the tech giant.



Read more at Nasdaq: A Once-in-a-Generation Investment Opportunity: 1 Artificial Intelligence (AI) Growth Stock to Buy Now and Hold Forever