Microsoft ( (MSFT) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Microsoft’s strategic investment in OpenAI has proven to be a lucrative decision, with the tech giant now holding a 27% stake in what is currently the most valuable private company globally. Despite initial skepticism, including from Bill Gates, Microsoft’s $13 billion investment has grown significantly, now valued at $135 billion. This comes at a crucial time as Microsoft’s Xbox hardware sales continue to decline, with a 29% drop in revenue compared to last year. However, this decline is not unexpected as the console market typically slows down after the initial launch period.
In addition to its success with OpenAI, Microsoft is also making strides in artificial intelligence development in the United States. The company is collaborating with several American universities, including Princeton and the University of Wisconsin-Madison, to advance AI research. This initiative is part of Microsoft’s broader strategy to bolster its AI capabilities, despite recent dips in its stock price. Analysts remain optimistic about Microsoft’s future, maintaining a Strong Buy consensus with a projected 20.16% upside potential in its stock price.