Jefferies calls Microsoft top AI winner, ups target to $550

Jefferies analyst Brent Thill raised the firm’s price target on Microsoft (MSFT) to $550 from $465 and keeps a Buy rating on the shares. The firm calls Microsoft the top artificial intelligence winner. Microsoft is the key beneficiary of generative AI, positioned to benefit from both infrastructure and “app angles opportunities, capturing the most of this transformational opportunity,” the analyst tells investors in a research note. In an “AI Deep Drive,” Jefferies recommends owning Microsoft and Amazon.com (AMZN) for the enterprise, Alphabet (GOOGL, GOOG) and Meta Platforms (META) for the consumer, and Crowdstrike (CRWD) for security. “Investors should start positioning now,” the firm contends.