Microsoft (NASDAQ: MSFT)’s foray into AI has turned Wedbush analyst Daniel Ives optimistic about the tech giant being a big a winner in this field.
The stock remains firmly on Wedbush’s best ideas list and the analyst while retaining a Buy rating, raised the price target on the stock to $375 from $340. Ives’ price target implies an upside potential of 12.66% at current levels.
The analyst commented, “We strongly believe the first step for MSFT was Azure/Office 365 with the next step ChatGPT/AI monetization on both the consumer and enterprise fronts combined adding $40 to $50 per share to MSFT’s sum-of-the parts valuation.”
Ives also believes that Nvidia’s (NVDA) ‘jaw-dropping’ “guidance heard around the world is a direct barometer for [Microsoft] as our recent checks further confirm the monetization opportunity for Microsoft is happening much sooner than the Street has anticipated.”
The top-rated analyst has pegged the AI market at around $800 billon.
Analysts are bullish about MSFT stock with a Strong Buy consensus rating based on 29 Buys, four Holds and one Sell.
