Microsoft is expected to experience significant growth due to its leadership in artificial intelligence

From Quartz: 2024-06-17 11:47:00

Microsoft is leading in generative artificial intelligence, with analysts suggesting it could have its “iPhone Moment.” Wedbush raised Microsoft’s price target to $550, citing increased spending plans from customers and potential revenue from Copilot and Azure. They predict that AI will drive significant growth for Microsoft, potentially adding $25 billion by 2025.

Compared to Amazon and Google, Wedbush believes Microsoft has a competitive edge in the cloud market. Microsoft’s AI growth is expected to accelerate in fiscal year 2025, with Wedbush calling it the “true inflection year.” Despite recent challenges, Microsoft’s share price was up 0.2% in Monday morning trading and has increased by 19.5% this year.

Microsoft recently lost its position as the world’s most valuable company to Apple. The Department of Justice and the Federal Trade Commission are investigating Microsoft, OpenAI, and Nvidia for potential anticompetitive behavior in the AI industry. This comes after Apple unveiled its AI strategy at the Worldwide Developers Conference.



Read more at Quartz: AI is Microsoft’s ‘iPhone Moment,’ Wedbush analysts say