Microsoft (NASDAQ:MSFT) stock has transformed itself into a technology powerhouse, overtaking the likes of Apple in 2024. That is for good reason, as the company will be a major beneficiary of the AI revolution.
Generative AI has significantly enhanced the company’s long-term growth potential, while Azure cloud deployments are still in their initial stages. The game-changing Copilot software from Microsoft and the growing use of LLMs like ChatGPT are reshaping industries. Investors can expect double-digit growth in the 2024 fiscal year.
Riding the Generative AI Wave
Microsoft stock is at the forefront of the gen-AI revolution, with advancements in this field propelling both user growth and product innovation.
Microsoft’s Bing search engine, often overshadowed by Google Search, is experiencing a reassurance due to the integration of generative AI.
More personalized search will be paramount to generative accurate results for users, especially across competitor platforms like YouTube. This is Microsoft’s way to more users and gain a stronger footing in the search engine realm.
Furthermore, Microsoft’s AI-powered Copilot software is gaining traction, and analysts remain optimistic about its long term revenue growth opportunities.
Generative AI services will be extremely competitive, and Microsoft already has the CAPEX, users, and data to accelerate their customers’ productivity.
The company already plans to release new features in 2024, including generating insights and other user analytics, integration with WhatsApp and SMS, and customer managed encryption.
Unmatched Cloud Computing Growth
Microsoft Azure, the company’s cloud computing arm, is experiencing explosive growth thanks to its AI growth prospects.
In Q2 FY24, revenue in the intelligent cloud increased 20% YOY to $25.9 billion. This was significantly higher than one of its main competitors, AWS, which only saw 13% growth.
Their lead in generative AI extends to Azure, which offers a robust suite of AI services that empower businesses to analyze data, automate tasks, and gain valuable insights. This unique combination of cloud infrastructure and AI capabilities gives Azure a significant edge.
Microsoft’s cloud infrastructure will be key for businesses who are looking to build, train, and scale advanced generative AI models. This will allow them to bring generative AI applications to market faster, while leveraging one of the best cloud computing platforms in the world.
Microsoft Stock Investors Should Think Long Term
Microsoft stock’s sound track record, combined with its leadership in generative AI and cloud computing, makes it a compelling investment opportunity in 2024. The company offers a unique blend of growth and stability, fueled by its extremely large moat and constant innovation.
Additionally, Microsoft has a strong balance sheet and ample cash reserves, allowing for strategic acquisitions and continued investment in R&D. Whether you’re a seasoned investor or just starting out, Microsoft stock deserves serious consideration as a cornerstone in your portfolio.
On the date of publication, Terel Miles 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.
