Editor’s note: Ingrid Hendershoteditor of Hendershot Investments, earned the seventh best performing recommendation in our annual “Top Picks 2023” report through mid-year. The software company Microsoft (MSFT) produced a total return of 49.9% over the period tracked. I reached out to her for updated feedback and advice on her”Awesome Ten” stock, and that’s what she provided…
MSFT is making a multi-year, multi-billion dollar investment in OpenAI, which could approach $10 billion. This will significantly increase its investment in the popular ChatGPT chatbot as Microsoft seeks to expand the use of artificial intelligence in its products.
Microsoft plans to integrate AI tools into all of its products and make them available as platforms that other companies can build on. Microsoft also integrates AI software into its suite of products, ranging from its design application Microsoft Design to the search application Bing.
Microsoft (MSFT)
It will also help fund the computing power OpenAI needs to run its various products on Microsoft’s Azure cloud platform. Excitement around AI has led Microsoft’s stock price to soar so far this year, with the stock currently looking quite valued.
Looking further ahead, Microsoft CEO Satya Nadella noted that the software company aims to reach $500 billion in revenue by fiscal year 2030, more than double its current size, and implying annual revenue growth of at least 10%.
Recommended Action: Buy MSFT
