Microsoft Corporation (NASDAQ-MSFT) today announced via press release that it has decided to expand the use of artificial intelligence in its business. The company plans to make this move for future and steady revenue growth. The company expects a 15.8% year-over-year revenue growth for the fourth quarter, the best growth in nearly two years, thanks to the AI services already in use with Office 365, but also due to the growing trend in the adoption of generative AI for demand with other cloud services. With its leadership in AI, Microsoft is likely to consolidate its lead as the largest company by market capitalization this year. The software giant took the top spot on Friday with a valuation of $3 trillion, surpassing Apple Inc.
Microsoft Inc. has also committed to investing more than $10 billion in generative AI. The company also recently launched a paid AI-enabled Microsoft 365 service, “Copilot,” for $30 per month. Copilot can draft emails, create presentations, and prioritize appointments on a calendar. The company is also of interest to investors with the release of its fourth quarter and fiscal year 2023 financial results tomorrow, January 30, 2024. The company also pays regular quarterly dividends to its shareholders. Currently, the dividend yield is 0.74% p.a. The actual dividend amount was approved by the AGM at $0.75 per share. According to analysts at brokerage firms and financial strategists at investment banks, the share price can be expected to rise in the short to medium term investment horizon. The average target price for the short to medium term investment horizon was set at USD 442.70 per share
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