Wedbush analysts raised their price target on Microsoft (NASDAQ:MSFT) to $375.00 from $340.00 while reiterating their Outperform rating due to the strong cloud deal flow and the potential for monetizing AI.
According to the analysts, the initial success of Azure/Office 365 sets the stage for Microsoft’s expansion into ChatGPT/AI monetization for both consumers and enterprises. This move could contribute an additional $40 to $50 per share to Microsoft’s overall valuation. The analysts believe that Nvidia’s impressive guidance in the AI sector serves as an indicator of Microsoft’s AI opportunities.