Commentary and demonstrations from Microsoft ‘s recent AI-focused Envision event are giving Wall Street more reasons to get bullish on the technology giant. At the event held in New York on Wednesday, Microsoft highlighted generative artificial intelligence solutions and capabilities, including its Copilot subscription service. The company announced pricing earlier this year for the product, which adds AI capabilities to Microsoft’s Office suite. So far this year, Microsoft has led the AI charge, announcing early in 2023 a multi-billion dollar investment in ChatGPT-maker OpenAI and a slew of other AI-focused initiatives . Shares have surged 41% year to date. MSFT YTD mountain Microsoft shares since the start of 2023 “Notwithstanding a more difficult operating environment, we remain confident that MSFT’s growth opportunities over the medium-term and beyond are greater than many realize, and this includes significant Generative AI monetization,” said Mizuho analyst Gregg Moskowitz in a Thursday note, reiterating his buy rating and $420 price target. Other Wall Street analysts also reiterated their buy ratings on shares, including Citi’s Tyler Radke and Goldman Sachs analyst Kash Rangan. According to Rangan, the event signaled that Microsoft is making progress on its “rich product roadmap.” A growing backlog in AI product demand should convert to more paying users as enterprises hunt for “high-[return on investment], quick time-to-value solutions,” he added. “Microsoft is in the unique position to transform the way software augments human productivity as it showcases the value it can drive in synthesizing, creating, and sharing information across a variety of different use cases,” Rangan wrote, forecasting generative AI as a potential $10 billion revenue opportunity. Along with the bullish commentary, the analyst maintained his $400 price target, representing 19% upside for shares. — CNBC’s Michael Bloom contributed reporting
