Microsoft is expected to perform well in the next six months, with potential for growth.

From Nasdaq: 2024-12-05 05:40:00

Artificial intelligence (AI) stocks like Nvidia and Palantir Technologies have seen significant gains this year, with Nvidia up over 183% and Palantir up over 313%. Meanwhile, Microsoft, despite its heavy investment in AI, has only risen 14.7%, lagging behind AI peers and the S&P 500.

Analyst Tyler Radke from Citibank believes Microsoft still has upside potential, expecting the company to perform well in the next six months. He noted Microsoft’s focus on cost optimization and efficiency, especially in AI, which could lead to improved growth numbers by early 2025.

Microsoft’s AI efforts, including investments in OpenAI and Copilot AI assistant, have led to productivity gains and revenue growth in its Azure cloud platform. Radke anticipates significant growth in the first half of 2025, driven by AI-related capital expenditures and increased capacity.

Despite Microsoft’s underperformance compared to AI peers this year, Radke believes its AI monetization efforts will pay off in 2025, leading to higher stock prices. With a promising outlook for the company’s AI initiatives, investors may find Microsoft to be a lucrative long-term investment opportunity. 1. The stock market reached record highs today, with the S&P 500 closing at 3,500 points for the first time in history. This surge was driven by positive news on the economy’s recovery and strong corporate earnings reports.

2. In other news, a new study has found that wearing a mask can significantly reduce the spread of COVID-19. Researchers found that wearing a mask can reduce transmission by up to 70%, highlighting the importance of following public health guidelines to prevent the spread of the virus.

3. On the political front, President Biden announced a new infrastructure plan aimed at creating millions of jobs and revitalizing America’s infrastructure. The $2 trillion plan includes investments in transportation, broadband, and clean energy, with a focus on creating a more sustainable and resilient economy.



Read more at Nasdaq: 1 AI Stock to Buy Before It Jumps 15%, According to a Certain Wall Street Analyst