While tech giant Microsoft (NASDAQ: MSFT) is expected to announce its calendar Q1 earnings on Tuesday, the artificial intelligence (AI) wars are heating up between MSFT and Google (GOOGL), something similar to Game of Thrones. In this scenario, top-rated Wedbush analyst Daniel Ives believes that Microsoft will emerge as the winner. The analyst has a Buy rating and a price target of $315 on the stock, implying an upside potential of 10.7% at current levels.
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The analyst commented, “With [Microsoft’s] investment into ChatGPT, we believe this was a great first-mover advantage for Microsoft capitalizing on an opportunity that has been brewing for the past few years.”Ives added that AI could be “a massive transformation for the company from Bing to Azure.”
Ives is of the opinion that the battle for AI dominance could play out over the long term as besides the above tech giants, other tech players could also spend “billions” over the years. The analyst perceives an opportunity for AI for both enterprises and consumers to be worth around $800 billion.
Analysts rate MSFT stock a Strong Buy based on 28 Buys, five Holds, and one Sell.
