Analyst Brent Thill reiterated his buy rating on MSFT today.
Microsoft stock is currently up about 35% versus the start of 2023.
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Microsoft Corp (NASDAQ: MSFT) is in focus today after a Jefferies analyst named it a top pick to bet on artificial intelligence.
Brent Thill recommended buying Microsoft stock in his research note this morning that said the tech behemoth could climb all the way up to $400 a share – about a 25% upside from here.
The analyst is bullish on the Nasdaq-listed firm primarily for continued efforts that it has made in recent years to expand its footprint in artificial intelligence.
Microsoft has taken pole position in what is likely to be a decade-long industry evolution. Amazon won round 1 of cloud wars. Microsoft could be the winner of round 2.
The news arrives about a month after MSFT reported its financial results for the third quarter that handily topped Street estimates as Invezz reported here.
Microsoft won the spotlight in artificial intelligence late last year when it announced a multi-billion-dollar investment in ChatGPT.
According to Jefferies’ Thill, though, the Redmond-headquartered firm had been quietly building its place in AI since before that. His research note reads:
MSFT has been working to position itself as the AI company and AI cloud for some time, starting with GitHub Copilot and continuing with OpenAI investments/recent AI related announcements.
In its latest reported quarter, the multinational saw a 13% growth in “Search” – suggesting that a ChatGPT integrated Bing was sitting well with users. Microsoft stock currently pays a dividend yield of close to 1.0%.
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