Not long ago, Microsoft (NASDAQ:MSFT) achieved a $3 trillion market capitalization and MSFT stock broke out to fresh all-time highs. So, it is time for investors to book their winnings and move on to something else? Consider the potential rewards of staying in the trade as Microsoft is still an artificial intelligence product powerhouse and innovator.
Microsoft made a brilliant move when it invested in ChatGPT developer OpenAI. Soon afterward, Microsoft enhanced its Bing search and Edge browser, as well as the company’s Copilot assistant, with robust AI functionalities. The company is still advancing its products’ AI capabilities, and Microsoft stock deserves a confident “A” grade for 2024.
Microsoft Debuts New Product With AI Features
As TechCrunch recently pointed out, Microsoft is “integrating more AI features into its existing Windows apps” including the Photos app and the Clipchamps video editor. Yet, Microsoft isn’t only adding AI enhancements to the company’s existing products.
Importantly, Microsoft is also breaking ground by introducing new products with AI integration. A new example of this is Microsoft Copilot for Finance, which is part of Microsoft’s savvy strategy of targeting specific industries (in this case, financial professionals).
With Microsoft Copilot for Finance, AI features can help users manage tasks like reviewing data sets and producing reports. Microsoft may debut other AI-enabled products soon; other targeted professional niches could include marketing and supply-chain logistics.
Analyst Firm Envisions Upside for Microsoft Stock
Given Microsoft’s relentless development of AI-infused products, how high should investors expect MSFT stock to go? It apparently has good upside potential, according a price target assigned by analysts with Barclays.
Specifically, Barclays analysts assigned an “overweight” rating and a $475 price target on Microsoft stock. The analysts observed that Microsoft “has revamped its search offering with new generative AI features.” They also pointed out that LinkedIn, which Microsoft acquired, “has become the largest business-to-business advertising player in the world.”
Looking ahead, the Barclays analysts (per Barron’s) see a $30 billion advertising opportunity for Microsoft. This includes $15 billion from search-advertising revenue, $10 billion from LinkedIn and $5 billion from advertisement technology.
MSFT Stock: $475 Is Possible, and Even Probable
Considering the tremendous opportunities that the Barclays analysts pointed out, there’s really nothing to stop Microsoft stock from reaching $475. Then, it’s only a question of how much higher the stock would go after that. Given enough time, Microsoft’s market cap is likely destined to hit the $4 trillion mark.
And for the bears and skeptics, note Microsoft’s continuous innovations and improvements in the company’s AI-capable products. The bull case for MSFT stock is only getting stronger now, and we’re assigning the stock an “A” grade today.
On the date of publication, Louis Navellier had a long position in MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
