02. Microsoft Corporation (NASDAQ:MSFT)
Upside Potential: 25%
Microsoft Corporation (NASDAQ:MSFT) has experienced a remarkable performance in 2023, with its stock price surging by an impressive 34%. This surge has undoubtedly caught the attention of both investors and analysts in the financial market. On September 19, analyst Mark Moerdler from Sanford C. Bernstein reaffirmed his “Outperform” rating on Microsoft Corporation (NASDAQ:MSFT) stock and adjusted his price target. He increased the price target from $398 to $400, signaling his continued confidence in the company’s growth potential. As of the latest available data, Microsoft Corporation (NASDAQ:MSFT) stock is trading at $320.77, representing a modest 2.4% decrease from its previous trading price. This minor dip in the stock price should be considered in the context of the broader upward trajectory that Microsoft Corporation (NASDAQ:MSFT) has exhibited throughout the year. Mark Moerdler’s decision to maintain the “Outperform” rating and slightly increase the price target underscores his positive outlook on Microsoft’s stock performance. The new price target of $400 implies a further upside potential of 25% from the current trading price, reflecting his belief in Microsoft Corporation (NASDAQ:MSFT) ability to deliver robust results and maintain a competitive edge in the technology sector. Microsoft Corporation (NASDAQ:MSFT) is a prominent player in the tech industry, with a diverse portfolio of software, cloud services, and hardware products. The company’s strong financial performance and leadership position in cloud computing have contributed to its stock’s impressive run in 2023.
Artisan Global Opportunities Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:
“We initiated new GardenSM positions in Workday, ABB and Microsoft Corporation (NASDAQ:MSFT) during the quarter. We decided to start a new campaign in Microsoft this quarter based on our view that it is the cleanest and clearest way to invest in the rise of generative AI. The company is building AI-driven copilots (AI-driven productivity tools) into all parts of the ecosystem, and it has become increasingly clear to us that this is the way the world is moving. These efforts started with Microsoft-owned GitHub Copilot to help software developers write code more efficiently. However, Microsoft has announced new Copilot features across other applications, such as Windows, which could significantly improve productivity for its massive user base. Given the pace of innovation around introducing these features across its products (e.g., GitHub, Office 365, Dynamics 365), we believe knowledge workers will capture productivity gains and the company will capture higher revenues per user. Furthermore, the rise of AI will also lead to more Azure usage and strengthen its lead over public cloud competitors. Microsoft’s access to sell these fast-moving services to its existing base of enterprise customers simply cannot be matched by any of its peers.”
