The AI arms race is about to get real. Today (Tuesday February 7) should see the official opening of from Microsoft (NASDAQ:MSFT) ChatGPT investment.
Don’t take this event lightly, it seems to be the gist behind comments from Wedbush’s Daniel Ives ahead of the much-talked-about bot’s anticipated entry into the Microsoft ecosystem.
“This OpenAI investment/strategic partnership, likely to be in the $10 billion range, is a game changer in our view for Nadella & Co. as the ChatGPT bot is one of the most innovative AI technologies in the world today”, the 5-star analyst said.
The investment appears to be part of Microsoft’s attempt to enter Google’s territory. Its Bing search engine currently controls around 9% of the search market, but the integration of the unique tool into the platform could lead to “major share changes” from undisputed search leader Google.
It’s not like Google is about to lie down and let Microsoft take over. It’s no coincidence that Microsoft announced its news event right after Google said it’s working on a rival of its own to ChatGPT called Bard.
ChatGPT will also likely be integrated into Microsoft’s cloud services alongside Azure, offering more “competitive threats” to companies like Amazon and Google.
As such, the tech giants are about to clash and Ives believes that to “unlock the potential of these innovative technologies on both the consumer and business fronts”, over the next 12-18 months, billions will be invested from the universe. technological. in the broader AI industry.
“We see this as the first cross shot in this Big Tech AI battle that is poised to hit its next investment march in the coming months with Microsoft now leading the race,” the analyst summed up.
What does all this mean for investors? Ives gives MSFT shares a $280 price target to support his Buy rating on the stock. His target suggests room for a 10% rally in the coming months. See ives history, Click here)
What does the rest of the street think about MSFT’s growth prospects? It turns out that other analysts agree with Ives. The stock received 25 Buys in the last three months compared to 3 Holds and a single Sell, making the consensus rating a Strong Buy. (See MSFT Stock Forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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