Amid what has been a tremendous year for the stock, Microsoft (MSFT) has been called a must-buy by $806 billion asset manager Bernstein. Indeed, the manager urged all investors to hold the tech company. They currently hold an outperform rating while holding a price target of $511.
The firm has continued to diversify over the last two years, most notably becoming a major player in the artificial intelligence space. With exposure and success growing throughout this year, there are high hopes for how the stock will perform in 2025.
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Bernstein Says Investors Should Own Microsoft Amid Outperform Rating
The last year has seen Wall Street continue to be enamored with the growing AI sector. Investors have embraced the AI arms race, with the prominent technology and its potential driving continued interest. That has led one company and its potential to stand out among experts.
Microsoft (MSFT) has been called a must-buy for investors by asset manager Bernstein. Specifically, the firm believes in its potential and its growing AI revenue. The business had been projected to surpass a $10 billion run rate for the next quarter, feeding optimism.
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The company’s $13 billion investment into OpenAI has been called some of the “best money ever spent,” despite its feeding into profits. That doesn’t deter Bernstein’s stance on Microsoft. More important, how its current position can be leveraged into success.
“Microsoft AI revenue is not exposed to the concerns relating to AI training spending but is instead predominately inferencing which is more stable and better margins,” the asset manager said.
Microsoft 365 Copilot has been looked at as a key growth driver. The company has reached more than $1 billion in annual revenue just a year after it launched. Additionally, Bernstein stated their belief that “it will continue to grow and grow at a healthy rate for many years to come” regarding the company’s AI tools.
