Microsoft's AI: The new 'iPhone moment'!

4/9/2024, 7:00 PM

Microsoft's AI Coup with OpenAI Power: Experts perceive impact on iPhone level. Innovation meets market – a historical comparison.

Eulerpool News Apr 9, 2024, 7:00 PM

The launch of the chatbot ChatGPT by the AI startup OpenAI marked a turning point in the broad perception of artificial intelligence and its practical applications. Microsoft, one of the main investors of OpenAI, responded quickly and integrated the AI technology into its products, thereby taking a leading position in the AI sector. Analyst Daniel Ives of Wedbush Securities compares the significance of this development to the appearance of the iPhone in 2007, and predicts a similar revolution for Microsoft.

Microsoft's Copilot, embedded in Bing and Office products, is already assisting users with a variety of tasks and could significantly accelerate the company's revenue growth. In particular, the Azure cloud platform and software solutions could benefit from additional Copilot features. Ives expects that the adoption of Copilot and generative AI will intensify in the next six to twelve months, which should give Microsoft significant market momentum.

In addition to the free AI features in Bing, Microsoft offers advanced capabilities with Copilot Pro that enable stronger monetization of the service. Given the potential for additional features and use cases, Ives expects Microsoft's AI tools to gain momentum within the current year, with 2025 being seen as the pivotal year for AI growth.

Ives' Positive Forecast Reflected in His Expectation That By 2027, Around 70 Percent of All Microsoft Service Users Will Utilize Copilot Features. This Could Lead to Significant Revenue Growth and Share Price Gains for Microsoft Stock. The Analyst Has Increased His Price Target for Microsoft from $475 to $500, Implying an Upside Potential of 17.76 Percent. Thus, Microsoft is Facing a Promising Future Where AI Applications Will Play a Central Role and Continue to Position the Company as a Leader in Innovation.

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