Microsoft seen as 'largest' AI share gainer in coming years
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Microsoft (NASDAQ:MSFT) has made no secret about how it views artificial intelligence technology as a key source of its future growth. Few signs of that are greater that Microsoft's (MSFT) "multi-year, multi-billion dollar" investment in ChatGPT developer OpenAI.
That emphasis on AI was part of the reason why Morgan Stanley analyst Keith Weiss said Monday that Microsoft (MSFT) is "best positioned to gain market share" among leading software companies that are pushing into the cloud and AI markets.
Weiss, who has an overweight rating and $307-a-share price target on Microsoft's (MSFT) stock, said results from a Morgan Stanley survey showed a "higher degree of cloud adoption" among enterprise customers in the long term that puts Microsoft (MSFT) in the driver's seat for pulling in sales from overall IT budgets. With AI anticipated to grow from 3% of current IT spending this year to 9% in three years, Weiss said Microsoft (MSFT) was the most frequently cited as "the largest share gainer" of AI and machine learning spending during the next few years.
Weiss said that given Microsoft's (MSFT) partnership with OpenAI, as well as list large installed base of customers, "this opportunity goes well beyond search and even well beyond [Microsoft] Azure's AI services."
Earlier on Monday, European lawmakers wrote to European parliament to call for new rules aimed at making AI technology more "safe and trustworthy."