Supported by "robust" consumer demand, Microsoft (MSFT, Financial) is keeping its lead in the evolution of artificial intelligence technology, notes Wells Fargo. Microsoft executive Mat McBride compared the company's present AI efforts to the early scaling of its Azure cloud architecture. McBride stressed, meanwhile, that Microsoft is currently in a pioneering role with less historical data to evaluate the results of its AI-related initiatives.
Notwithstanding this obstacle, Microsoft is sure about its short- and long-term expenditure intentions, according to Wells Fargo analyst Michael Turrin. With an Overweight rating and a $515 price target on the company, Turrin said consistent consumer interest is guiding Microsoft's investments in artificial intelligence and data centers. This amounts to more than a 19.5% rise from current prices.
Citing two consecutive quarters of higher capital expenditures as proof of easing supply chain constraints. Moreover, supported by continuous interest in AI-related developments despite the reversals in the stock gains linked to the industry, Microsoft shares have risen 14.7% year-to-date.
