News

Wedbush Analysts Boost Microsoft Price Target on Resilient Cloud Deals and AI Monetization

Published by
Matthew Martins
  • Wedbush analysts raise Microsoft’s price target to $375 per share, reflecting confidence in the company’s resilient cloud deals and AI monetization opportunities.
  • ChatGPT and AI technologies are expected to be the next drivers of growth for Microsoft, adding $40 to $50 per share to the company’s valuation.
  • Analysts estimate that for every $100 spent on Azure cloud services, there is an additional $35-40 of AI spend, presenting an estimated $800 billion AI market opportunity over the next decade.

In a significant development, Wedbush analysts have raised the price target on Microsoft (NASDAQ: MSFT) shares from $340 to $375. The revised target reflects the analysts’ positive outlook on Microsoft’s cloud deal flow and the immense opportunity for monetizing artificial intelligence (AI).

Reaffirming their Outperform rating and including Microsoft on Wedbush’s esteemed Best Idea List, the analysts expressed confidence in the company’s future growth prospects. They believe that Microsoft’s initial accomplishments with Azure and Office 365 have set the stage for the next phase of expansion, fueled by the integration of ChatGPT and AI monetization in both consumer and enterprise sectors. The analysts estimate that these advancements could add $40 to $50 per share to Microsoft’s overall valuation.

In a note to clients, the analysts emphasized the significance of Nvidia’s recent “jaw-dropping guidance” as an indicator of AI trends, further underscoring Microsoft’s AI monetization opportunity, which is evolving more rapidly than anticipated. Their research findings indicate that for every $100 invested in Azure cloud services, an additional $35-40 can be attributed to AI expenditures. This points to a substantial market opportunity estimated at $800 billion over the next decade.

While the analysts maintain a bullish stance on Microsoft’s non-AI segments, they argue that ChatGPT will serve as a crucial driver of growth for the company. They suggest that Microsoft’s cloud infrastructure, combined with the underlying Office 365 and Windows ecosystem, will continue to comprise an increasingly significant portion of the company’s operations, propelling growth and improving margins in fiscal years 2023 and 2024. The analysts concluded that the integration of ChatGPT and AI technologies will introduce a new layer of growth to Microsoft’s overarching strategy in the coming years.

The announcement has already had a positive impact on Microsoft’s stock performance, with pre-market trading on Tuesday showing a 1.1% increase in share value.

As Wedbush analysts express their confidence in Microsoft’s ability to harness the power of AI and capitalize on the thriving cloud market, investors are eagerly awaiting the company’s future growth prospects. With the emergence of ChatGPT and AI monetization, Microsoft appears poised to solidify its position as a technology leader and extend its reach across various sectors in the global economy.

Matthew Martins

Share
Published by
Matthew Martins

Recent Posts

Tesla Unveils Refreshed Model 3 in North America with Exciting Upgrades

Model 3 Refresh: Tesla introduces a restyled Model 3 in North America, featuring a rear…

January 11, 2024

SEC Twitter Account Compromised, False Bitcoin ETF Approval Post Triggers Market Volatility

Unidentified individual accessed SEC's Twitter through a third party. Lack of two-factor authentication heightened vulnerability.…

January 11, 2024

Global Currency Markets Navigate Economic Uncertainties: Yen Weakens, Dollar Awaits U.S. Inflation Data

Japanese yen falls against the dollar and euro due to persistently shrinking real wages for…

January 11, 2024

Oil Prices Unmoved as Unexpected U.S. Inventory Build Raises Concerns

Unexpected Inventory Build: U.S. crude inventories unexpectedly grew, sparking concerns about weakening fuel demand and…

January 11, 2024

YanGuFang International Group Appoints Interim Executives Amidst CEO and CFO Detainment

Leadership Shake-up: CEO and CFO of YanGuFang International Group detained by Shanghai Police, prompting interim…

January 11, 2024

Cryptocurrency Market Analysis: SHIB, SOL, and ETH Navigate Challenging Terrain

SHIB breaches 200-day EMA, signaling bearish sentiment. Historical data suggests strong buyer reactions and potential…

January 11, 2024