In a surprise move, tech giant Microsoft (NASDAQ: MSFT) was upgraded by top-rated Guggenheim analyst John Difucci from Sell to Hold. The analyst emphasized Microsoft’s strength in generative artificial intelligence (AI), highlighting the positive influence of this technology.
However, he cautioned that optimism among investors might be excessively high, underscoring potential “material risks” concerning the scale and timing of monetization compared to expectations. Notably, Difucci was the sole analyst on Wall Street with a ‘Sell’ rating on Microsoft prior to this upgrade.
Microsoft recently introduced an updated version of its Copilot generative AI tool, enhancing its integration across various products, including Bing, Microsoft 365, and Windows. Windows’ new Copilot version is slated for a September 26 release, while Copilot for 365 will be available to enterprise customers starting November 1.
What is a Good Buy Price for MSFT?
Overall, analysts are bullish on MSFT stock, with a Strong Buy consensus rating based on 30 Buys and four Holds.