#1 - Microsoft (NASDAQ:MSFT)
The 2022 launch of OpenAI’s chatbot, ChatGBT, is putting a focus on Microsoft Corporation (NASDAQ: MSFT). The company has already invested over $1 billion in OpenAI and is likely to increase its investment as it tries to incorporate ChatGBT into its Bing search engine.
If successful, it would make Bing an even more formidable competitor to Alphabet’s dominance in search. Bing is already the number two search engine behind Google, but it currently only has a single-digit market share (Google has about 70% market share).
There are legitimate questions regarding how much Microsoft will have to spend to get those clicks and how that will sit with investors putting earnings under more scrutiny in 2023. But the company has already said it plans to use AI in every product in its portfolio. That type of long-term focus is exactly what’s needed with MSFT stock.
At the time of this writing, Microsoft was trading around 25x earnings. However, the stock is at the lower end of its 52-week range. And unlike many stocks in this sector, Microsoft pays a dividend that the company has been increasing for the past 20 years.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.
Read More - Current Price
- $436.60
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 26 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $508.46 (16.5% Upside)
