2023-09-22 19:23:14
Cisco is focused on the next generation of AI-driven security and observability, and Splunk’s unique and highly regarded platform is the right acquisition at the right time, Wedbush believes. (Photo: 123RF)
What to do with the titles of Microsoft, Aritzia and Cisco? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
Microsoft (MSFT, US$320.77): the monetization of artificial intelligence is coming
The arrival of the monetization of artificial intelligence by Microsoft is coming sooner than expected, estimates the Wedbush firm.
Analyst Daniel Ives recalls that since the presentation of the results for the fourth quarter of 2023, investors were in waiting mode regarding the growth trajectory of cloud computing and the presence, in the company’s figures, of opportunities for growth. monetization of artificial intelligence.
Even if Microsoft management speaks of a gradual introduction for the monetization of artificial intelligence for 2024, the analyst now believes that the adoption curve of this technology is accelerating sooner than expected.
Recent audits by Wedbush clearly demonstrate an increase in the use of artificial intelligence by Azure users, leading Daniel Ives to believe that Microsoft should exceed the platform’s 25% to 26% growth forecast cloud application in the first quarter of 2024.
The analyst adds that he estimates that within three years, more than 50% of the services used by its business and commercial customers will use artificial intelligence, which represents a major change for Microsoft. While the technology will see gradual growth in 2024, 2025 will be the real growth inflection point, as pricing and use cases will likely be established over the next three to six months.
Daniel Ives argues that for every $100 spent on Azure in recent years, we now see an additional $35 to $40 linked to artificial intelligence, which changes the overall market for Microsoft, with ChatGPT as a growth tool main.
Wedbush maintains its forecast of outperformance of Microsoft’s stock compared to its sector of activity as well as its target price of US$400.
Aritzia (ATZ, $22.41): important results to regain confidence
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