Microsoft and the AI Boom: Is MSFT Stock a Smart Buy for 2024?

Stocks to buy

Microsoft (NASDAQ:MSFT) stock just recently hit a huge milestone, becoming the second company behind Apple (NASDAQ:AAPL) to reach the $3 trillion market cap status. The prospects of artificial intelligence have Wall Street excited, as MSFT stock is at the forefront of this revolutionary technology. 

Generative AI is arguably one of the most important technologies since the early 2000’s. Microsoft is wasting no time too, as they aim to rapidly deploy AI across its entire tech stack. This includes their AI-powered co-pilot software for Windows and its partnership with startup OpenAI

Microsoft will be a market leader in artificial intelligence, and the long-term market opportunities could spell huge returns!

Microsoft’s AI-Powered Copilot Software to Drive Revenue Growth

There has been a lot of chatter recently about Microsoft’s copilot software which was introduced in Q1 2023. Analysts are turning bullish on Wall Street, as they tout the long-term revenue growth opportunities it can bring to the business.

Microsoft’s 365 copilot leverages LLMs with customers’ data into Microsoft Graph, turning words into a seamless and extremely powerful productivity tool. Their new business chat feature will be a game-changer, which uses NLP to generate status updates across the entire Microsoft 365 suite. 

However, that is not all as the company plans to release new features in the 2024 fiscal year. Customers are excited about the potential to increase productivity while creating new experiences for their audiences. Furthermore, a Piper Stanley analyst estimates Microsoft copilot add-on could generate $10 billion per year by 2026.

Azure Cloud Deployment is Only Beginning

Microsoft has only begun to integrate generative AI applications into the cloud. 

Azure’s cloud infrastructure is pivotal to scaling advanced foundational models to boost productivity for businesses. Azure’s OpenAI service is one of the driving forces to scale their AI offerings. 

Their Azure AI portfolio allows organizations to build and train models while bringing generative AI applications to market faster. 

Generative AI Opportunities are Limitless

Generative AI has emerged as one of the most important computer technologies in the last 20 years. It presents ‘limitless opportunities’, with the ability to accelerate workloads and productivity beyond just mundane tasks. 

Companies will be able to empower their employees with advanced AI tools, leveraging data to make work more seamless and efficient. But it is not just employees that will be benefiting. The everyday person, creator, or solopreneur will have the same access to tools to perform tasks at scale. 

Microsoft has barely scratched the surface when addressing the long-term market opportunities in generative AI. Advanced foundational models will be a pivotal growth driver for industries from marketing and sales to customer operations. Investors might be undervaluing its true potential, making MSFT stock a buy in 2024. 

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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