Morgan Stanley analysts Keith Weiss and Josh Baer have highlighted the success of Microsoft's (MSFT, Financial) investment in OpenAI in a recent report. They have raised the target price for Microsoft to $530, citing growth in direct monetization and increased market share in the IT sector.
The report emphasizes Microsoft's strategic positioning in the upcoming generative AI innovation cycle, particularly with advancements in its Azure AI business. The analysts also note that Microsoft's disciplined spending approach is expected to result in a mid-single-digit compound annual growth rate.
