Microsoft ( (MSFT) ) has risen by 11.28%. Read on to learn why.
Microsoft’s stock has experienced a notable increase of 11.28% over the past week, driven by several key developments. A significant factor in this surge is the company’s increasing reliance on artificial intelligence (AI) in its software development process. According to CEO Satya Nadella, AI now contributes to 20-30% of Microsoft’s code, with expectations for this figure to rise further. This shift has caught the attention of investors, highlighting Microsoft’s commitment to integrating cutting-edge technology into its operations.
Additionally, Microsoft’s decision to raise the prices of its Xbox Series consoles has also played a role in the stock’s upward movement. The company cited rising development costs as the reason for the price hike, which includes an increase in the price of the Xbox Series S from $299.99 to $379.99 and the Series X from $499.99 to $599.99. Despite the potential for consumer pushback, this move reflects Microsoft’s strategy to maintain profitability in its gaming division amid evolving market conditions.
Wall Street analysts have responded positively to Microsoft’s recent performance, maintaining a Strong Buy consensus rating on the stock. With an average price target of $506.31, analysts see a potential upside of 16.4%. This optimistic outlook, combined with Microsoft’s strategic initiatives in AI and gaming, has contributed to the stock’s impressive rally, making it an attractive option for investors looking to capitalize on technological advancements and market trends.