Tech giant Microsoft (MSFT) may be concerned about whether or not it can survive in an artificial intelligence (AI) future, but it certainly seems to be working on embracing that future at a rapid pace. To that end, Microsoft rolled out the Windows AI Labs program, first noticed in “…pre-release updates to Microsoft Paint…” The idea is interesting enough, but investors are a little less than pleased. In fact, Microsoft shares were down modestly in Tuesday afternoon’s trading.
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Word from partner director of product management at Microsoft Mike Harsh noted, “The Windows AI Lab is a pilot acceleration program for validating novel AI feature ideas in Windows. The program focuses on rapid customer feedback on feature usability, customer interest, and market fit.“
Reports note that some versions of Paint now have the prompt to access Windows AI Labs. Meanwhile, some versions do not. It is also a bit of a blank about what features Microsoft is looking to test. There are several possibilities, of course: some are looking for Adobe (ADBE) Photoshop-style tools added to Paint. Perhaps there is even room for an image generator that can create images from prompts. The possibilities are there, certainly, but which we get remains to be seen.
Huge Indie Investment
Indie gaming used to be kind of an also-ran in gaming: there, but not big enough to bother with. And for a long time, there was a reason. Indie games did not have anywhere near the look of their triple-A compatriots, but often had unexpected quirks going for them that helped. Now, with the rise of the “modern audience” concept, indie games are getting a whole new look from the market, and Microsoft is buying in accordingly.
Microsoft recently established a set of new Game Pass deals. ID@Xbox program creator Chris Charla noted that Microsoft was already working to bring indie game developers into the fold, and in 2025, the investment in indie gaming is at an “all-time high.” Though there are some concerns about Game Pass “cannibalizing” sales, the exposure for indies is a point that has to be kept in mind as well.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 19.87% rally in its share price over the past year, the average MSFT price target of $625.78 per share implies 22.76% upside potential.
