Microsoft (NASDAQ:MSFT) is generating heat in the financial markets because of its investment in conversational/generative artificial intelligence (AI). As Microsoft threatens Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) search-engine dominance, MSFT stock will likely head higher throughout the year.
In the 2020s, Microsoft can’t count on its Windows operating system to keep the company relevant. Machine learning is all the rage nowadays, and Microsoft is reinventing itself as a leader in the generative AI space.
The company’s primary mega-cap competitor in this regard is Alphabet. Yet, Microsoft is making all the right moves and keeping Alphabet in second place. Consequently, Microsoft’s loyal shareholders should enjoy substantial returns on their investment by 2024.
What’s Happening With MSFT Stock?
$350 was a stubborn resistance level for MSFT stock in late 2021. Recently, the stock hovered near $250. However, Microsoft has been in the headlines lately due to its powerful push into generative AI. As a result, we should expect more investors to become interested in Microsoft during the coming months.
As you’re probably aware, the rising popularity of OpenAI’s ChatGPT chatbot has kept machine learning top-of-mind among many traders this year. Microsoft cemented its lead in the generative AI arms race when it invested $10 billion in OpenAI.
Meanwhile, Alphabet clearly rushed out its response to ChatGPT way too soon; some of the company’s employees have acknowledged this. Google’s AI chatbot, known as Bard, botched an answer to a query about the James Webb Space Telescope. The incident was embarrassing for Bard and Alphabet, and it only made Microsoft look superior in comparison.
Microsoft Is Making the Most of Its AI Technology
The buzz surrounding machine learning in 2023 has been a boon for Microsoft and its stakeholders. It’s a catalyst that can move MSFT stock higher — possibly, even back to its all-time high set in 2021.
Microsoft has already embedded ChatGPT’s generative AI technology into its Bing search engine. This development could make Bing a serious threat to Alphabet’s Google. Bing is still a distant second to Google in terms of search engine market share. However, AI-powered Bing could catch up to Google at some point.
And now, Microsoft is bringing its AI technology to the mobile apps for Bing and the Edge browser. Microsoft is also introducing Bing to Skype, so Skype is getting an AI infusion as well.
In other words, Microsoft is practically powering its entire tech ecosystem with best-in-class machine learning. As the company makes the most of AI in its various product offerings, Microsoft could leave Alphabet in the dust this year.
Can MSFT Stock Really Hit $350 by 2024?
As Microsoft continues to ambitiously advance AI technology, Alphabet looks destined to stay in second place. The early investment in OpenAI is, without a doubt, enhancing Microsoft’s value to the company’s shareholders.
Since $350 provided a stubborn resistance level in 2021, it’s an appropriate target for MSFT stock investors. After all, resistance levels are meant to be broken, and Microsoft’s push into machine learning should bring many more investors into the fold. Therefore, the Microsoft share price can, and most likely will, hit $350 or higher by 2024.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.