Dividend Stocks

MSFT Stock Outlook: A Blizzard of Profits Is Coming

What will happen after Microsoft (NASDAQ:MSFT) inevitably gets full approval to purchase a famous video game manufacturer? I fully expect MSFT stock to make a big move soon. If you’re not accumulating Microsoft shares now, then you might end up buying later this year at much higher prices.

Besides, Microsoft is constantly figuring out smart ways to incorporate artificial intelligence (AI) into its products and services. All in all, investors can always expect a good value from Microsoft regardless of the current share price.

AI Bulls Need to Own MSFT Stock in 2023

Again and again, Microsoft is leading the pack when it comes to AI adoption. As you may recall, Microsoft made a sizable investment in OpenAI’s ChatGPT chatbot technology.

Then, Microsoft incorporated that technology into the Bing search engine as well as the Edge browser. With those moves, Microsoft sought to win the generative AI crown and beat out its tech-space competitors.

What has Microsoft been up to lately, though? Just recently, the company announced Microsoft Copilot, “your everyday AI companion.” Basically, Copilot will help users navigate the Bing, Edge, Microsoft 365 and other products with AI functionalities.

For example, Copilot can assist with creating “faster, complete tasks with ease” in Windows or using AI for “drawing and digital creation” in Microsoft Paint. It will be interesting to find out whether Microsoft’s competitors roll out services similar to Copilot; I strongly suspect that they will.

Microsoft’s Game-Changing Deal Takes a Step Forward

Now, here’s the news item that everyone’s talking about. After blocking a previously proposed deal, the U.K.’s Competition and Markets Authority finally granted provisional approval for Microsoft to acquire Activision Blizzard (NASDAQ:ATVI).

It’s hard to express the magnitude of this buyout. Gamers know that Activision is the pioneer of popular titles like Call of Duty and Guitar Hero. With the company’s vast resources, just imagine how far Microsoft could take those franchises.

Under the revised terms, Microsoft would have to would relinquish the non-European streaming rights to Activision’s games. Furthermore, the cost of the deal may change; the buyout price was listed as $75 billion by Barron’s and as $69 billion by Bloomberg.

However, don’t get bogged down by buyout prices or by the current share price of MSFT stock. Microsoft will, I predict, gain significant value with Activision in its holdings. Thus, the time to invest in Microsoft is today, not next month or next year.

MSFT Stock Is a Must-Own Asset for 2023

Are you still waiting for confirmation that Microsoft is an AI innovator? Just check the latest news and you’ll be convinced that Microsoft is an early and ambitious leader in the generative AI space.

Moreover, Microsoft will rule the gaming universe once the company inevitably gets full approval to buy out Activision Blizzard. Then, it’s only a matter of time before MSFT stock shoots higher — so, start accumulating the shares before the next rally commences.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.