Microsoft's AI Future Is Bright After Tapping Altman, OpenAI's Is Uncertain: Analysts
Portfolio Pulse from Anusuya Lahiri
Analysts are optimistic about Microsoft's AI future after hiring Sam Altman, previously fired by OpenAI. Piper Sandler and Mizuho analysts maintain positive ratings on Microsoft with price targets of $425 and $420, respectively. The hiring is seen as a strategic move to control Microsoft's AI destiny and build an end-to-end AI stack. However, there is uncertainty about OpenAI's future, with concerns of rapid value destruction. Microsoft's Q2 revenue and EPS projections are slightly above and below consensus, respectively. MSFT shares saw a slight premarket decline.
November 21, 2023 | 5:13 pm
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POSITIVE IMPACT
Microsoft's strategic hiring of Sam Altman is viewed positively by analysts, with strong price targets suggesting confidence in its AI direction. Q2 projections are close to consensus, indicating steady performance.
The hiring of Sam Altman is seen as a positive move for Microsoft's AI strategy, which could lead to increased investor confidence and potentially drive the stock price up. The price targets from analysts are above the current trading price, indicating an expected positive performance. However, the slight discrepancy in Q2 projections versus consensus may temper immediate reactions.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90