If your portfolio doesn’t have some exposure to artificial intelligence (AI), you’re a little late to the party. That’s okay, though, as it’s not too late to take a position in Microsoft (NASDAQ:MSFT) stock. No doubt about it — Microsoft will continue to push the boundaries in the generative AI field this year, and thereby deliver outstanding value to the shareholders.
Not everyone is fond of OpenAI’s ChatGPT chatbot, which Microsoft invested heavily in early this year. Yet, ChatGPT is here to stay whether the critics like it or not.
You can try to resist the bot revolution, but that’s a losing battle. Instead, consider getting into the winner’s circle as Microsoft is bringing generative AI to the masses and leaving its rivals in the dust.
Analysts Are Bullish on MSFT Stock
What do Wall Street’s experts see in their crystal balls? Their forecasts are largely positive as the analyst consensus rating for MSFT stock is a “strong buy,” with 27 out of 32 analysts assigning the stock a “buy” or equivalent rating.
Plus, on average, analysts expect the Microsoft share price to move up to $297.25. Furthermore, JPMorgan Chase analyst Mark Murphy is even more optimistic than that. He gave the stock an “overweight” rating and $305 price target.
Per Barron’s, JPMorgan Chase analysts cited “Microsoft’s broad portfolio of products, which could benefit from AI integration.” That’s a great point, and we’ll delve deeper into that topic momentarily.
To sum it up, Murphy is bullish about Microsoft’s position as a “clear early leader” in generative AI. Moreover, he sees Microsoft as having the “potential to achieve escape velocity” in the generative AI field.
Microsoft Goes All-In on AI
From the Azure cloud platform to the Bing search engine and Microsoft 365 productivity suite, Microsoft is clearly going all-in on machine learning this year. Per CNBC, Wells Fargo analyst Michael Turrin predicts that the company’s AI push “could all add up to over $30 billion in new annual revenue for Microsoft, with roughly half coming from Azure.”
Don’t expect Microsoft to let up in its AI gambit anytime soon. According to a Microsoft blog posting, “Edge is now the first and only browser with an integrated AI image generator.”
The AI image generator is called Image Creator, and it could be an industry disruptor like Word and PowerPoint once were. The point is, Microsoft will be relentless in pursuing the latest and greatest AI technology. So, why not buy and hold a few shares of MSFT stock right now?
What You Can Do Now
There are a number of publicly traded, AI-focused companies out there. However, if you’re going to take a position in generative AI, you’d might as well invest in the best.
Microsoft is miles ahead of the competition and will, I believe, continue to lead the field in AI technology. Hence, for high-confidence exposure to machine learning in 2023, consider a long position in MSFT stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.