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Microsoft Ahead in AI Arms Race: ChatGPT Boosts Growth Potential

Wedbush analysts informed investors on Thursday that ChatGPT contributes significantly to Microsoft's (NASDAQ: MSFT) growth potential. Consequently, they increased the company's stock price target from $325 to $340 while maintaining an Outperform rating.

Microsoft logo
Microsoft logo

Stable Cloud Deal Flow Enhances Bullish Outlook

The analysts also emphasized the stable cloud deal flow, strengthening their bullish perspective on Microsoft. The company continues to feature on the firm's Best Ideas List.

AI Monetization Opportunities in the Cloud

According to Ives, recent conversations with Microsoft customers, partners, and field checks have revealed the vast monetization potential of deploying AI and ChatGPT in the cloud. Microsoft is leading the AI arms race focusing on monetization as the next step.

Microsoft's Unique Position in Cloud Market

The analysts believe that Microsoft has a unique opportunity to gain market share in the cloud sector while introducing additional AI capabilities. This could expand the company's total addressable market in the cloud by 35%-40% over the coming years.

Microsoft Shares Down 1.78% on Thursday

At the time of writing, Microsoft's shares experienced a 1.78% drop on Thursday.