Goldman Sachs' View on Microsoft:Target to $500 in 12-month
$Microsoft(MSFT)$ is forming a new group focused on developing AI apps and providing tools for third-party customers The new group will be led by @jayparikh the former CEO of cybersecurity startup Lacework and former global head of engineering at $Meta Platforms, Inc.(META)$ .
The group will be called Core AI - Platform and Tools.
Photo Credit: Gerard Julien/AFP via Getty Images.
Read more analysis from @yourcelesttyy
Is AI's Golden Era🌌 Fading? Microsoft Bets Big🎰 on ChatGPT Enterprise🌟
$Goldman Sachs(GS)$ pointed in a report:
Entering 2025, $Microsoft(MSFT)$ stock is in a unique position to benefit from two aspects:
on the one hand, AI-related revenues shift from the infrastructure layer to the platform layer and application layer;
on the other hand, AI workloads move from the model and product trial stage to the broader deployment stage.
After $Microsoft(MSFT)$ 's underperformance of the Nasdaq last year (17 percentage points behind in 2024), we believe its stock price is expected to reverse in 2025 for the following reasons:
1) Azure business re-acceleration: As AI data centers come online, AI-related capacity constraints are alleviated.
2) M365 Copilot brings more significant revenue growth contribution: This can shift investors' focus from cost concerns to revenue opportunities.
3) Earnings per share (EPS) are supported:
Despite Microsoft's losses on its investment in OpenAI, rising cash levels and interest income after share repurchases and dividends can still support and even increase EPS.
CIO surveys continue to show that $Microsoft(MSFT)$ remains the market leader, with 80% of CIOs expecting to allocate some generative AI workloads to Azure.
At the same time, Copilot feature enhancements and more use cases are rapidly coming to market (shown at Ignite), which is expected to improve the AI revenue opportunity.
As customers allocate more budget for AI solutions and expand product deployment, we believe Copilot may develop into a key use case for generative AI, especially as Microsoft builds out its enterprise AI ecosystem.
$Microsoft(MSFT)$ now price close at $415.62,Active trade Panda @PandaOptions at X platform:
$MSFT Looking like its almost time for this name to get some rotation back into it. Reclaim over $418.53 is the spot I'm watching
Do you believe in Goldman Sachs’s prediction and would like to find lower entry point with Panda?
Read more analysis about $Microsoft(MSFT)$ from @yourcelesttyy :
Is AI's Golden Era🌌 Fading? Microsoft Bets Big🎰 on ChatGPT Enterprise🌟
MSFT – Potential Buy Opportunity at Support Level from @Elle_Evans
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