Microsoft (MSFT) stock was on the move Thursday after CEO Satya Nadella commented on the tech giant’s artificial intelligence (AI) efforts. According to an internal memo obtained by Business Insider, Nadella told top company executives that it needs to “rapidly rethink the new economics of AI across the company — just as we once did with the cloud.”
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To achieve the change that the Microsoft CEO wants, he has brought in Rolf Harms as an advisor to its AI operations. This is the same Microsoft executive who authored the white paper that was used for Microsoft’s transformation to a cloud company in 2010. Considering that MSFT stock has increased 1,651% since then, having Harms lead the company’s AI transformation seems like the right choice.
While there have been concerns about an AI bubble, those have started to lessen lately. This was partially thanks to Nvidia’s (NVDA) earnings report, which saw it beat Wall Street’s estimates. Additionally, Nvidia CEO Jensen Huang dismissed the AI bubble and said the company sees “something very different.”
Microsoft Stock Movement Today
Microsoft stock was largely flat on Thursday, but the shares have still increased 16.69% year-to-date and 17.76% over the past 12 months. These gains are largely tied to the company’s AI business, which has boomed alongside increased demand for AI services.
Is Microsoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 32 Buy and three Hold ratings over the past three months. With that comes an average MSFT stock price target of $631.70, representing a potential 30.17% upside for the shares.
