MSFT

Microsoft’s AI Leap: How a $3.5 Billion Investment Could Skyrocket MSFT Stock

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

From Bing search and the Edge browser to the Copilot assistant, Microsoft (NASDAQ:MSFT) is effectively deploying artificial intelligence in a variety of use cases. Our MSFT stock analysis is bullish for 2024, and investing in Microsoft makes sense if you’re seeking prime exposure to AI technology.

You may have heard about Microsoft’s solid fourth-quarter 2023 results. Wedbush analyst Dan Ives called it a “masterpiece quarter” for Microsoft, and we concur with this assessment. As you learn about the company and its status as an AI-tech leader, you’ll surely agree that Microsoft stock fully deserves an “A” grade.

Microsoft Invests in AI in Germany

Truly, Microsoft’s vision for AI technology has no borders or limits. Evidently, Microsoft’s next target for expansion is Germany. According to Microsoft President Brad Smith (per Reuters), Germany “came second in Europe for the creation of AI based applications.”

Over the next two years, Microsoft has plans to invest nearly $3.5 billion in Germany, mainly in AI technology. “We are doing this because of the enormous confidence we have in Germany,” Smith explained.

German Chancellor Olaf Scholz expressed his support for this huge investment. Yet, this investment won’t only benefit Germany. It should also position Microsoft as a global AI-market leader.

Microsoft can expand its presence in Germany and strike up deals with major customers in the region. Plus, Microsoft will be able to recruit top tech talent in Germany.

OpenAI Takes on the Search-Engine King

As you’re probably aware, Microsoft invested heavily in the generative-AI technology of OpenAI. In fact, Microsoft has a 49% stake in OpenAI.

So, when there’s news pertaining to OpenAI, it’s also major news for Microsoft. In a fresh news item, OpenAI is reportedly developing a search engine to compete directly against Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.

This gen-AI search engine will be powered in part by Microsoft’s Bing search engine. Could this be the watershed event that will finally enable Microsoft to topple Google, the search engine king?

Anything’s possible in 2024. In January, Bing only controlled 3.43% of the search-engine market, while Google controlled 91.46%. Different people will take away different conclusions from this.

What we take away is that Microsoft has plenty of room to expand in the search-engine market. Google is the king, for now. Yet, Microsoft easily beats Alphabet in the area of AI technology advancement.

Just consider how much more successful OpenAI’s ChatGPT has been, compared to Alphabet’s Bard chatbot. There’s really no comparison there, so Microsoft could actually pose a major threat to Alphabet and steal some of Google’s search-engine market share.

MSFT Stock Analysis: We’re Still Pounding the Table

Microsoft isn’t the search-engine king – at least, not yet. We’ve pounded the table for Microsoft stock before, and we’re still confident that the company can provide value as an AI-technology innovator.

So, why wager your hard-earned money on second-rate tech companies? Microsoft is the gold standard on a global scale, especially in the field of AI. Our MSFT stock analysis remains optimistic and we’re assigning the stock a confident “A” grade.

On the date of publication, Louis Navellier had a long position in MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

More From InvestorPlace

The post Microsoft’s AI Leap: How a $3.5 Billion Investment Could Skyrocket MSFT Stock appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.