- Timothy Horan, an analyst at Oppenheimer, has reiterated an Outperform rating for shares of Microsoft Corp, which trades with the ticker symbol MSFT on the NASDAQ stock exchange. The analyst also issued a $330 price target.
- Microsoft has announced 50 new AI-focused products leveraging its partnership with OpenAI, and Bing will now be the default search engine on ChatGPT. Additionally, the number of Azure OpenAI customers has increased by 80% to 4,500, making it one of the fastest-growing services in Azure’s history.
- Despite the partnership with OpenAI, Microsoft insists that it should be thought of as any other customer. Microsoft’s CFO, Amy Hood, says that OpenAI uses the Azure infrastructure and the Azure AI services to support its customers.
- The analyst has higher confidence in MSFT’s revenue growth despite not changing the estimate. They predict that MSFT’s revenue growth will accelerate back into the mid-teens by FY25.
- With Azure’s AI-optimized infrastructure, OpenAI’s LLM, and the network effect of Microsoft’s first-party apps, Microsoft is well-positioned for the next large computing wave driven by AI, with a 1.5 billion-user Windows/Office and 100-million developer GitHub ecosystem.
- Price Action: The shares of MSFT traded at $325.10, having risen by 3.58% on Thursday.
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