If you’re looking for a golden ticket to potential gains in the fast-growing market for artificial intelligence technology, Microsoft (NASDAQ:MSFT) stock earns a confident “A” grade for growth and value. There’s no disputing the outstanding performance of Microsoft stock in 2023. Where does Microsoft’s value come from, though?
The answer lies in the company’s relentless drive to innovate in cloud computing, software, AI and other high-tech fields. So, don’t worry too much about Microsoft’s hefty market capitalization. It’s likely to get much bigger in the coming quarters, and Microsoft should continue to provide excellent value to the shareholders.
OpenAI Soap Opera and MSFT Stock Investors
Microsoft is known as a consistent earnings winner and a bellwether in emerging technology industries. Notably, the company gained a leadership position in generative AI when Microsoft invested $13 billion in ChatGPT chatbot developer OpenAI.
However, some stock traders may have become anxious over the past few weeks, due to the executive-level soap opera at OpenAI.
To recap, OpenAI’s board of directors ousted co-founder and CEO Sam Altman, and co-founder Greg Brockman quit the company in protest. Soon afterwards, Altman and Brockman agreed to return to the company, with Altman returning to the chief executive position at OpenAI.
Currently, most of the board members who initially kicked Altman out of OpenAI aren’t on the board anymore. Thus, Altman can lead the company without too much pushback from the board.
That’s good news for Microsoft, which is heavily invested in OpenAI. Even better, Microsoft will reportedly gain a seat on OpenAI’s board of directors. This will be an observing, non-voting member of the board, but it’s a sign that Microsoft should be able to work hand-in-hand with OpenAI.
Microsoft Stock Remains a Prime AI Play
With its multibillion-dollar investment and board seat at OpenAI, Microsoft should have no problem staying at the forefront of AI technology. Yet, that’s not the only reason to consider Microsoft stock a powerful AI play for the coming year.
Reportedly, Microsoft is taking its campaign to dominate the gen-AI market abroad. The company plans to invest a whopping 2.5 billion British pounds over the next three years, with the goal of expanding data centers for AI in the United Kingdom.
The UK government’s economic and finance ministry hailed Microsoft’s “investment in UK AI infrastructure” on X (formerly known as Twitter). Prime Minister Rishi Sunak considers this event a “turning point for the future of AI infrastructure and development in the UK.”
Microsoft clearly has governmental support for its AI technology push in the U.K. Could this region of the world provide fertile ground for future revenue streams? Only time will tell. However, Microsoft is planting its flag in the U.K. early and aggressively, and the company’s rivals may have a tough time playing catch-up.
MSFT Stock: Ride With a Winner for the Long Haul
Microsoft stock rode higher in 2023 and sent the short-sellers into hiding. So, what’s coming in 2024? As long as the market for gen-AI products remains robust, Microsoft’s shareholders should be in good shape.
Of course, there are no guarantees that Microsoft’s investors will win in the long run, but just look at history. Holding MSFT stock has been a solid strategy in the past, and the future looks bright for the stock and the company. Therefore, you’re encouraged to conduct your due diligence on Microsoft and consider a share position in your portfolio.
— Louis Navellier and the Investor Place Research Staff
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Source: Investor Place