One of the most high-profile artificial intelligence (AI) plays in the market right now is undoubtedly Microsoft (NASDAQ:MSFT). Most investors are well aware of the company’s key investment in OpenAI, the company behind ChatGPT. However, there are other AI-related reasons why MSFT stock is skyrocketing higher today.
Currently, MSFT stock is up approximately 5% today, hitting a fresh new all-time high. This move comes as the company unveiled additional information about its AI tool, Copilot. Pricing has been released ($30 per month) for E3, E5, Business Standard and Business Premium Customers. This reflects a relative price increase of more than 80% for these specific customers. Thus, while this may not be the best news for users, it’s great news for Microsoft shareholders.
Additionally, the company announced a more secure version of its Bing search engine chatbot and noted that it has expanded its AI partnership with Meta Platforms (NASDAQ:META). Investors appear eager to see how this will play out.
Another key partnership in focus today is Microsoft’s deal with Teladoc (NASDAQ:TDOC), which will enhance the latter’s Health Solo platform.
Let’s dive into what investors may want to make of this flurry of news today.
MSFT Stock Is Surging, For Good Reason
There are few companies with the breadth and strength of catalysts Microsoft has right now. In many cases, companies choosing to integrate artificial intelligence technology into their business are doing it for long-term future prospective gains. In the case of Microsoft, this company has already made meaningful headway and improvements to its product suite, with tangible revenue impact to point to.
Thus, these sorts of partnership deals and announcements really do have the potential to impact the company’s top and bottom lines materially. Today’s 5% move higher in MSFT stock is an indication that the market believes these deals will bring continued (and potentially higher) revenue growth over time. I can’t disagree with that sentiment.
Of course, Microsoft is among the more expensive mega-cap names, and a fresh all-time high is likely to draw critics at some point. But given the company’s solid growth trajectory, and historical performance, it’s hard to bet against this winner. These deals seem to only cement Microsoft as a core holding for retail and institutional investors, particularly in this time of relative uncertainty.
On the date of publication, Chris MacDonald 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.
