Why Microsoft Stock Deserves a Spot in Your Portfolio in 2024

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It’s funny, how life comes full-circle sometimes. Many years ago, Microsoft (NASDAQ:MSFT) became a gigantic company based on the company’s operating systems for personal computers. Now, there’s talk of a PC-market resurgence and Microsoft has developed artificial intelligence embedded programs for PCs. It’s just another reason that MSFT stock can continue to provide supreme value for the shareholders.

As Microsoft continues to evolve, its market capitalization grows over time. The company relentlessly advances the latest and greatest in tech trends, including AI-capable software. Consequently, we’re giving Microsoft stock a well-deserved “A” grade and are preparing for it to perform well in 2024.

A Milestone for MSFT Stock Investors to Celebrate

When we call Microsoft an “MVP” or “most valuable player,” this is a baseball metaphor but there’s also a literal meaning to it. That’s because Microsoft recently overtook Apple (NASDAQ:AAPL) to become the most valuable publicly traded company.

Apple had a market cap of $2.87 trillion, while Microsoft beat that number with a market cap of $2.89 trillion. The point here isn’t to put down Apple. Rather, we’re emphasizing that Microsoft’s smart strategy of investing early and heavily in generative AI technology is paying off big-time.

Matrix Asset Advisors Chief Investment Officer David Katz cited a couple of reasons Microsoft took Apple’s place as the market-cap leader. First, Microsoft “has done a better job of executing and demonstrating earnings growth.”

Furthermore, according to Katz, Microsoft “has a much clearer roadmap with AI, and it has done a great job articulating how that will accelerate growth to make its long-term prospects even more compelling.”

Microsoft Goes All-In on Next-Gen AI Tech

By the time you read this, the market-cap leader may be Microsoft, Apple or some other company. That’s not the most important issue, though. What really matters is that Microsoft never ceases to advance its AI-compatible programs for multiple use cases.

Not only did Microsoft invest in OpenAI’s ChatGPT gen-AI chatbot technology, but the company also enhanced its browser, cloud-computing and video-conferencing programs with AI functionalities. Now, with the financial-media buzz getting louder about a potential PC-market comeback, Microsoft is ambitiously rolling out its AI-powered Copilot assistant software.

Yusuf Mehdi, Microsoft corporate vice president, emphasized the AI-tech functionalities that Copilot can bring to PCs.

“There’s never been a better time to get started with Copilot today, whether it’s turning your ideas into songs, creating beautiful images and polished drafts to adjusting your PC settings, Copilot is your everyday AI companion for work and life,” he said.

Moreover, Mehdi contends that when Copilot is combined with AI-capable PCs, “Every user becomes a power user.”

Reportedly, Microsoft’s new keyboards for Windows-based PCs will even include a dedicated button to launch Copilot. It’s another sign that Microsoft is going all-in on AI tech during a year when the PC market might turn a corner.

Winning Is a Way of Life With Microsoft Stock

Clearly, Microsoft isn’t a company that sits back and coasts on its past achievements. The company continues to develop next-generation technology, and this is why Microsoft stock provides ongoing value to the shareholders.

So, don’t obsess over which company has the biggest market cap on any given day. Just remember Microsoft can generate robust revenue in 2024 by enhancing its products with powerful AI features.

Therefore, MSFT stock easily earns an “A” grade and investors can prepare for another winning year by considering a share position today.

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.

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