Microsoft ticks up as Guggenheim upgrades, citing generative AI prowess
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Microsoft (NASDAQ:MSFT) shares rose fractionally in pre-market trading on Monday as investment firm Guggenheim upgraded the U.S. tech giant citing its prowess in generative artificial intelligence. 
Analyst John DiFucci raised his rating to neutral from sell and pointed out that the narrative surrounding generative AI is "too positive a force to contend with."
Despite the rise of generative AI, DiFucci cautioned that investor optimism may be too high, pointing out that the size and timing of monetization could be a "material risk" compared to expectations.
DiFucci was the only analyst on Wall Street to have a sell-rating on Microsoft (MSFT) prior to the upgrade.
Last week, Microsoft (MSFT) unveiled an updated version of its Copilot generative AI tool that works across all of the company's products, including Bing, Microsoft 365 and Windows.
The new version of Windows with Copilot will be available on September 26, the company said at the event. Additionally, the company said that the Copilot for 365 would be available to enterprise customers starting November 1.
Analysts are largely bullish on Microsoft (MSFT). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates MSFT a HOLD.

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