OpenAI is not expected to offer Microsoft and other investors a seat on its new nine-person board, the Information reported on Tuesday, citing a source.
NetApp raised its annual profit forecast on resilient demand for its cloud-based data solutions as companies push on digital transformation projects, sending its shares up 10% after the bell on Thursday.
NetApp beat second-quarter revenue expectations on resilient demand for its cloud-based data solutions as companies push on digital transformation projects, sending its shares up 10% after the bell on Thursday.
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Group 1 Automotive, Inc. (Symbol: GPI), where a total of 2,345 contracts have traded so far, representing approximately 234,500 underlying shares. That amounts to about
EU antitrust regulators have asked Microsoft's rivals whether the U.S. software giant's proposal to unbundle its chat and video app Teams from its Office product is sufficient to address their concerns, according to a questionnaire seen by Reuters.
Amazon.com on Tuesday announced a new artificial intelligence chip for its cloud computing service as competition with Microsoft to dominate the market for artificial intelligence heats up.
Amazon.com on Tuesday introduced its newest data center chip for its cloud computing service as competition with Microsoft to dominate the market for artificial intelligence heats up.
Tuesday, November 28, 2023The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corporation (MSFT), Broadcom In
Below is Validea's guru fundamental report for MICROSOFT CORP (MSFT). Of the 22 guru strategies we follow, MSFT rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental moment
But if you’ve missed the gains in megacap tech companies Microsoft and Nvidia, buying “picks and shovels” could be a worthwhile strategy for the long term.
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The
recent openAI saga – the ouster of Sam Altman and his dramatic comeback as the CEO of the ChatGPT creator startup, created some concerns about the impact of this uncertainty on Microsoft’s (
NASDAQ:MSFT
)
generative artificial intelligence (AI) roadmap. With this short-term disruption abating, analysts remain bullish on Microsoft stock, reinforcing their belief in the tech giant’s diversified business model and AI tailwinds.
Analysts’ Bullish View on Microsoft
During the recent saga, many analysts expressed their concerns about the impact of the drama surrounding OpenAI’s management on the start-up’s collaboration with Microsoft and, consequently, its impact on Microsoft’s generative AI ambitions that are leveraging OpenAI’s technology.
For instance, prior to the reappointment of Altman as OpenAI’s CEO,
UBS analyst Karl Keirstead highlighted that OpenAI underpins MSFT’s AI story. He opined that if OpenAI remains in turmoil and Microsoft’s internal ‘AltmanAI’ initiatives take time to deliver results, then “the risk profile of Microsoft’s AI story just went up materially.”
Nonetheless, with the chaos at OpenAI addressed to quite some extent now, we note that most analysts remain bullish on the stock. Following OpenAI’s announcement of the return of Altman and the appointment of a new Board,
Mizuho analyst Gregg Moskowitz said that this was clearly the desired outcome for the startup. He expects MSFT’s partnership with OpenAI to remain strong.
“Notwithstanding a more difficult operating environment,” Moskowitz remains confident that MSFT's growth opportunities are greater than many realize, including significant Generative AI monetization. MSFT remains a top pick for Moskowitz. He reiterated a Buy rating with a price target of $420.
Another MSFT bull,
TD Cowen analyst J. Derrick Wood, reaffirmed a Buy rating on MSFT stock last week, with a price target of $390. Following a survey by his firm, the analyst noted that Microsoft dominates the $53 billion Productivity Suite market with nearly 80% customer market share. While he believes that Alphabet’s (
GOOGL
) Google could take share over time as it gains more usage from the younger generation, he highlighted that MSFT enjoys high customer satisfaction, a solid foothold in the enterprise space, and an effective bundling strategy.
Wood also pointed out many strengths of Microsoft, including an extensive breadth of products, substantial potential revenue opportunities from Copilot (MSFT's new GenAI tool for its M365 suite), and a high possibility to increase Azure and MS365 bundling and gain Infrastructure as a service (IaaS) share.
Is MSFT Stock a Buy, Hold, or Sell?
Microsoft stock scores Wall Street’s Strong Buy consensus rating based on 32 Buys versus one Hold. The average price target for MSFT stock of $409.86 implies 8.3% upside potential.
Shares have advanced 58% year-to-date.
Conclusion
The recent turmoil at ChatGPT creator OpenAI did cause some worries about the impact on Microsoft’s generative AI ambitions. With the matter now addressed, analysts continue to believe in Microsoft’s growth story.
Disclosure
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This REIT was recently upgraded by an Oppenheimer analyst based on its AI-driven growth prospects. Here's what investors need to know about this dividend stock.