There is no shortage of names out there when you consider who might be the leader in AI stocks. Maybe you’re thinking Nvidia (NASDAQ:NVDA) or even Meta Platforms (NASDAQ:META). But you might not be thinking of Microsoft (NASDAQ:MSFT). A growing number of analysts are convinced that it is the new king of AI. Nevertheless, Microsoft is down fractionally in Tuesday morning’s trading.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Wedbush Securities, via analyst Dan Ives, along with GBK Collective and the Wharton School at the University of Pennsylvania, worked together to arrive at the conclusion that Microsoft is top of the heap. But indeed, it’s a tenuous top, as it’s closely followed by Meta Platforms as well as Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG). One thing was truly certain from this massive study: over the course of the next decade, billions of dollars will be spent on AI in one form or another. That top slot is likely to shift plenty over that time frame.
Meanwhile, over at Morgan Stanley, they’re saying much the same thing. Analyst Keith Weiss is calling Microsoft the “pole position” stock with generative AI. It’s also in a good position to keep pulling in users. Throw in its already substantial presence in cybersecurity and cloud operations and the end result is a powerhouse that has the name recognition to bring in the customers.
What is the Fair Value of MSFT?
Indeed, these analysts aren’t alone. Microsoft stock is already considered a Strong Buy by analysts, supported by 30 Buy ratings and four Holds. Further, with an average price target of $397.19, Microsoft stock offers its investors a 20.17% upside potential.
