Analysts at JPMorgan Chase supported the prediction that artificial intelligence technology will help Microsoft increase its annual revenue by $10 billion, and the software giant’s share targets rose 3.2% to $348.10, renewing its all-time high in November 2021.After OpenAI’s ChatGPT implementation went viral, the field of artificial intelligence spread throughout the tech industry and Microsoft soon became a key developer partner. Many tech companies have begun to actively incorporate artificial intelligence into their products, emphasizing its ability to optimize labor costs in the face of recession.
Microsoft signs investment agreement with OpenAI
Microsoft has begun to significantly integrate ChatGPT and related products into its services. The company signed an investment agreement with OpenAI and received an exclusive license for OpenAI AI models, including advanced GPT-4, in exchange for providing cloud infrastructure. OpenAI tools are integrated into a wide range of Microsoft products, from the Bing search service to the Windows operating system. The commercial impact of AI remains an important question.
Microsoft CFO Amy Hood said in April that she expects the Azure cloud segment to grow by 26-27% in the fourth quarter of the fiscal year, with a percentage of it coming from AI services. In a conversation with Microsoft CTO Kevin Scott last Monday, he announced that this space will show the biggest momentum in the company’s history, increasing its annual revenue by $10 billion. After that, analysts at JPMorgan Chase increased their target price for Microsoft stock from $315 to $350. The company’s stock has gained 46% this year alone, offsetting the negative momentum of 2022, which has been disappointing for the entire tech industry.
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