Microsoft’s AI leap to $3T?

Microsoft was one of the beneficiaries of the recent AI gold rush, and its stock trades are up more than 41% so far this year, more than two-and-a-half times the gains of the S&P 500. While some investors fear the stock has come too far, too fast, Wedbush Securities analyst Dan Ives believes the Microsoft stock will continue its upward trajectory and join Apple in the exclusive $3 trillion market-cap club by early 2024.… Microsoft took a decisive step early this year when it added to its existing investment in ChatGPT creator OpenAI, bringing the total to more than $13 billion.

The company also made the strategic decision to integrate ChatGPT into its Bing search engine. Microsoft estimates that every 1% of market share gains in search will represent a $2 billion revenue opportunity. However, it’s the integration of AI into the other aspects of Microsoft’s business that represents the most significant opportunity.

As one of the Big Three cloud providers, Microsoft’s Azure cloud provides the company with the perfect opportunity to offer AI to the masses.… Furthermore, since Microsoft is one of the leading software providers to enterprises, the companyalso has the opportunity to layer AI functionality into Office 365, Dynamics, Teams and more.

From ‘Analyst Dan Ives Says AI Could Push Microsoft into the $3 Trillion Club With Apple by Early 2024’, The Motley Fool