Microsoft remains in ‘leadership position’ in GenAI race, says Morgan Stanley

Morgan Stanley analyst Keith Weiss reports that the firm’s Q3 CIO survey found that artificial intelligence and machine learning remain at the top of the CIO priority list. Given hyperscalers remain the favored vendor group for CIOs in supporting deployment efforts for GenAI and LLMs, as well as Microsoft’s (MSFT) deep integrations across the software ecosystem, vast scope of products and significant and increasing AI infrastructure investments, the firm argues that Microsoft “remains in the leadership position” to capture incremental share of GenAI spend and IT budgets as workloads move to the cloud. The firm keeps an Overweight rating and $625 price target on Microsoft shares.