MSFT Stock: A Slow Burn to Riches in the Age of AI
No matter how you slice it, Microsoft (NASDAQ:MSFT) stock has been a winner in 2023 so far.
Some financial traders might have valuation-related concerns about Microsoft. However, the share-price rally could persist as Microsoft will undoubtedly benefit from its practically inevitable acquisition of Activision Blizzard (NASDAQ:ATVI).
Microsoft assuredly will continue making waves in generative artificial intelligence.
Don’t get the wrong idea here. If you’re looking for multi-bagger returns over the next six or 12 months, investing in Microsoft probably won’t get you there.
That said, Microsoft shares can provide “steady Eddie” portfolio growth over the long haul. Whether it’s the video-gaming market or machine learning, Microsoft never ceases to push boundaries and offer superior value to its stakeholders.
MSFT Stock and the Activision Acquisition
It might seem like it’s taking forever for Microsoft to acquire video-game developer Activision Blizzard. The financial headlines are always full of suspense: Will Microsoft actually receive approval to buy out the Call of Duty franchise owner or not? And if so, when will this finally happen?
Without a doubt, Microsoft would benefit tremendously from the revenue-generation opportunities. The best thing that MSFT stock investors can do now is just be patient. Enjoy the victories, as the Microsoft-Activision deal has already received approval in the European Union.
Plus, Chinese authorities have reportedly cleared Microsoft to take over Activision Blizzard. On top of all that, Microsoft scored a victory in a U.S. court against gamers (of all people) who sought to block the Activision deal.
So, just relax and understand that these things take time, but Microsoft will probably prevail in the end.
Microsoft Stays Ahead of the Curve in AI Tech
If you bet on Microsoft earlier this year, then you definitely bet on the right horse to win the race in generative AI technology. Microsoft made a smart move when it invested early and heavily in OpenAI and its ChatGPT chatbot.
You just never know what machine-learning innovations Microsoft might announce next. For instance, the company recently disclosed a suite of “AI solutions and improvements to Microsoft Cloud for Nonprofit.”
These tools and features are specially “designed to transform the nonprofit industry and how fundraisers engage with donors.” They can also help fundraisers to “manage campaigns and optimize operations.”
Furthermore, Microsoft will continue to advance leading-edge generative AI with OpenAI through the ChatGPT platform, including its recent iteration, known as GPT-4.
In fact, researchers with Microsoft contend that GPT-4’s observed “performance is strikingly close to human-level performance.” Truly, Microsoft and OpenAI could be on the cusp of a historic breakthrough in the near future.
Have Realistic Expectations With MSFT Stock
It’s not too late to invest in Microsoft, though it’s important to keep one’s expectations in check. The second half of 2023 might not match the first half, as Microsoft shares have already gained significant value.
It’s fine for most investors to take a moderately sized position in Microsoft. If you hold an index fund, you might already have some exposure to Microsoft, so be aware of that. In any case, MSFT stock earns a solid “B” rating and is appropriate for many retail investors’ portfolios.
On the date of publication, Louis Navellier had a long position in MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.