Shares of Microsoft (NASDAQ:MSFT) are slightly down at the time of writing despite recent developments that suggested it may have found new growth potential as an AI stock thanks to its connection to ChatGPT. The word from Wedbush Securities, via analyst Dan Ives, is that ChatGPT has given Microsoft the kind of thing investors should be happy about – another possible vector for growth.
While Microsoft hasn’t really figured out how to monetize artificial intelligence just yet, it’s only a matter of time. Ives noted that various points around the industry have made it clear to him that the whole field stands to see big growth from AI once they get a handle on how to monetize it effectively.
So why aren’t investors more responsive? After all, Microsoft announced that it wouldn’t be offering any pay raises to full-time employees in 2023. Cost control is certainly important to shareholders. But perhaps the problem lies with Microsoft’s head of Xbox, Phil Spencer; Spencer offered up some disastrous remarks about the state of the Xbox gaming console just a week ago, noting that “great games” won’t fix its problems and that it can’t “out-console” its competitors at Sony (NYSE:SONY) or Nintendo (OTHEROTC:NTDOY).
Analysts, meanwhile, are much more optimistic than either Phil Spencer or investors today. With 29 Buy ratings, four Holds, and one Sell, Microsoft stock is considered a Strong Buy. With an average price target of $325.73 per share, Microsft stock also offers investors a slim upside potential of 5.22%.
