Microsoft Corp (NASDAQ:MSFT)'s Build developer conference kicks off this week and analysts at Wedbush expect the world’s most valuable company to focus on showcasing artificial intelligence advancements across its PC and Windows segments.
Anticipated highlights include the integration of ChatGPT-powered Copilot into Microsoft’s consumer and enterprise products.
"We expect Microsoft to push Copilot further into its consumer/enterprise product stack and more integration with Excel, Teams, Word along with new Surface products and Windows features front and center," stated Wedbush.
Wedbush analysts “believe the stock still has yet to fully price in what we view as the next wave of cloud and AI growth coming to the Redmond story as AI enterprise use cases catalyze more budget dollars to AI in 2024/2025”.
The rollout of new AI features is seen as a catalyst for increased subscriptions and deeper integration within Microsoft's user base through new Surface laptops and Windows updates, marking “the start of a new PC AI-driven refresh”.
"Our thesis remains that the cloud and underlying Office 365/Windows ecosystem is going to comprise a bigger piece of the Redmond top-line going forward and will ultimately spur growth and margins into the rest of FY24/FY25," Wedbush added.
“We look forward to hearing more details from the Build conference as Redmond bets big on its AI strategic vision and technology moat for its golden installed base.”
Build kicks off on Tuesday in Seattle.