Microsoft (MSFT) CEO Satya Nadella gave a stern warning about artificial intelligence (AI) during a speech at the World Economic Forum (WEF). According to Nadella, the technology sector will “quickly lose even the social permission to take something like energy, which is a scarce resource, and use it to generate these tokens, if these tokens are not improving health outcomes, education outcomes, public sector efficiency, private sector competitiveness, across all sectors, small and large, right?”
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Nadella also noted that he doesn’t believe AI is a bubble. Instead, the Microsoft CEO stated that AI is only a bubble if tech company partnerships and infrastructure spending are all that come from it. If AI can be adopted by the general populace, this would prevent that from happening. On that note, Nadella argued that there needs to be more AI use by job seekers, as they should master it much in the same way one would master Microsoft Excel to improve their skillset.
AI faces several hurdles it must overcome before it will be utilized by the general populace. It faces pushback in creative spaces, some areas in the U.S. have placed bans on the building of AI data centers, and consumers have grown frustrated with the increased prices of PC parts related to AI demand. If AI can’t overcome these issues, widespread adoption could be difficult, increasing the risk of the potential bubble being popped.
Microsoft Stock Movement Today
Microsoft stock was down 1.64% on Wednesday, extending a 7.54% drop year-to-date. Despite these dips, the stock is still up 1.85% over the past 12 months.
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 two Hold ratings over the past three months. With that comes an average MSFT stock price target of $630.64, representing a potential 41.27% upside for the shares.
