Today was actually pretty big for tech giant Microsoft (MSFT) and its work in artificial intelligence development. Not only did we get a look at what analysts think of the Fairwater data centers, we also got a look at a whole new application. This combination of factors brought great cheer from investors, who sent Microsoft shares launching up over 4% in Friday afternoon’s trading.
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First, we got word from UBS analyst Karl Keirstead, who has a five-star rating on TipRanks, maintained his Buy rating on Microsoft, though pared back the price target from $650 per share to $600. Keirstead found that there were not likely to be significant delays in getting the Fairwater facilities up and running out in Wisconsin. With no real delay to speak of, the Fairwater facilities were likely to add value to Azure, and fuel further growth for Microsoft.
And what is Microsoft doing with some of this AI capacity? One report noted Microsoft was giving Paint users the ability to make their own coloring book pages. Only Windows Insiders will have access to this tool, at least for now. But with it, users can offer text-based prompts of what they want to see on the page—“a cute fluffy cat on a donut” was one example—and the image will render, but without color, for users to add later.
Fable Bringing Xbox Games Studios Back?
Meanwhile, the return of the Developer Direct show brought with it one major new development that caught a lot of attention. Specifically, the return of Fable caught a lot of attention at the show. Early reports suggest that the new Fable draws on some of the best parts of the old Fable, like “…reactivity, comical combat, and unapologetically British comedy.”
Further, the new Fable will also boast a “…huge, seamless open world…,” which should be welcome to those who prefer their adventures deep and immersive. However, the new game will not be paying much attention to the timelines of previous games, instead going off on its own within the Albion setting.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 1.59% rally in its share price over the past year, the average MSFT price target of $626.14 per share implies 33.01% upside potential.
