Microsoft (MSFT) could see higher highs.
All thanks to the artificial intelligence boom, say analysts at Truist, which just initiated coverage with a buy rating, with a $600 price target. “Their early investments in artificial intelligence have positioned them to take a leadership position in what we view as the fastest growing multi-billion-dollar market in technology,” they said, as quoted by Barron’s.
“Though their early execution in the generative AI market has been impressive, we believe that MSFT is poised to deliver further upside to expectations as projects go into production.”
Even better, according to Next Move Strategy Consulting, the AI market – currently valued at about $100 billion – could grow twenty-fold by 2030 to more than $2 trillion.
All while the technology massively disrupts everything about everything.
Plus, generative AI could add between $2.6 trillion and $4.4 trillion a year to the global economy. That’s according to a new McKinsey report, which also said it could have a significant impact across all industry sectors.
Even Goldman Sachs says generative AI could drive a 7% (or almost $7 trillion) increase in global GDP and lift productivity growth by 1.5 percentage points over a 10-year period.
In short, there’s a good deal of potential further upside for MSFT.
The tech giant last traded at $374.45, and could test $425, we believe, before the year is over.
