Artificial intelligence (AI) and tech giant Microsoft (MSFT) have not gone together well over the last few months. It has made significant gains on that front, yes, but it also alienated a lot of its user base by shoving those gains into just about everything it touches. And just as Skyrim does not need a port for toasters, so too does Microsoft not really need to put AI in spreadsheets. But Microsoft’s plans on this front may be shifting, and that shift has garnered it some support. Microsoft shares were up over 2% in Friday’s trading.
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Microsoft is working to build “…secure foundations for the era of frontier AI.” This sounds high-minded, but it is also accurate. We are in the very early days of AI, and it has already left a lasting impact on humanity. So it is establishing certain baselines for development going forward.
One of these is the reinforcement of basic cybersecurity. This includes key principles like Zero Trust architectures and the use of multi-factor authentication. Then, Microsoft looks to release more advanced features in a measured way, focusing on releasing “responsibly.” This means a key focus on real-world testing and trying to find real-world misuse applications in advance. Improving vulnerability management, providing faster fixes—and hopefully with fewer bugs, which has plagued Windows itself in recent months—and improving AI security on an international scale will also help provide the safest and most effective path for AI’s future.
Xbox Mode
Meanwhile, with the next Xbox likely to resemble a gaming PC more than an actual console, Microsoft is bringing Xbox Mode to PCs via Windows 11. This move gives users access to “…a controller-optimized, console-like gaming experience.” The result is an improved interface that can work with aggregated libraries like Steam, and may even require less RAM to work fully.
This is part of the ongoing string of changes hitting Xbox since the arrival of Asha Sharma. Since many of these changes were requested by players, it also represents a solid potential way to stem some of the losses it has already seen. And with the Steam Machine set to emerge sometime this year, possibly, Microsoft has many reasons to cut potential losses before they become gaping holes.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 30 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 6.32% loss in its share price over the past year, the average MSFT price target of $554.33 per share implies 33.82% upside potential.
