Microsoft Inc. is currently a very attractive stock to buy for multinational investment corporations and private investors. This is mainly due to the extensive update of the Windows 11 Pro and Home operating system and its subcomponents in the AI sector. On March 21, 2024, the company unveiled its Office 365 programs, powered by AI. The company is also introducing the Surface Event platform to its fleet of software add-ons. The Surface platform is all about AI in the lead role. AI will not only play a role in how we interact with software, but also how we use hardware, other devices, both at work and in gaming. The prospect of new Surface hardware, along with major developments in AI, Windows and Copilot, point to a revolution in the Windows platform. This device is also expected to be in the Surface Pro 10 PC version, which will be targeted at business users and will be billed as the first “AI PC”.
Microsoft has also currently made GPT-4 Turbo available in a free version of Copilot for Windows. Its new version GPT-4.5 Turbo is around the corner and there is a real chance that OpenAI will join Microsoft with the new GPT-4.5 Turbo. Is this a coincidence ? Maybe, but given the friendly relationship between OpenAI and Microsoft, perhaps a future reality. It has even been suggested in the media that its successor GPT-5 could be in existence this summer.
At the birth of AI, Microsoft (NASDAQ: MSFT ) effectively managed the evolution of AI and cemented its position by investing ahead of the rise of AI in the mainstream, namely OpenAI. Another major growth segment is Microsoft Cloud, which is emerging as a key catalyst for Microsoft’s growth. This segment alone posted remarkable year-over-year revenue growth of 24% in the second quarter, accounting for more than 50% of Microsoft’s total revenue. The company has also set ambitious targets, aiming to reach $500 billion in revenue by the end of 2024. Key to this goal are investments in cloud infrastructure, as well as developing proprietary AI GPU chips and reducing dependence on external suppliers.
The company also pays regular quarterly dividends to its shareholders. Currently, the dividend yield is 0.71% p.a. The actual dividend amount was approved by the AGM at $0.75 per share. The company also currently has a known last day to claim the dividend (Ex Dividend Date) , which will be May 15, 2024 and a known dividend payment date (Pay Date), which has been set for June 13, 2024. 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 has been set at USD 470.30 per share.
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