How did Microsoft (NASDAQ:MSFT) stock earn its membership among the “Magnificent Seven” club of technology giants? Of course, it has something to do with Microsoft gaining an early and strong foothold in the field of generative artificial intelligence. Even after MSFT stock spent much of 2023 moving higher, it still earns an “A” grade and should continue to send the short sellers into hibernation.
Sure, Microsoft leapfrogged over its competitors when it invested in OpenAI’s ChatGPT generative AI chatbot technology. There’s more to this story, however. Microsoft hasn’t stopped advancing new and upgraded generative AI enhanced products, and don’t expect the company to slow down in 2024.
Can MSFT Stock Really Keep Going Higher?
Sometimes, you’ll hear bearish-leaning commentators claim that “Magnificent Seven” stock investors will get exhausted soon. They’ve been wrong most of the time in 2023, and they’ll probably continue to lose money and opportunities in 2024, especially if they’re betting against Microsoft.
Microsoft’s value doesn’t come from traditional metrics like price-to-earnings ratios. Rather, it comes from Microsoft’s leadership status as a developer of next-generation products. That’s how the company became huge and famous in the first place, several generations ago.
In generative AI, which is 2023’s most important technology trend, Microsoft is still ahead of the pack. Besides its investment in the ChatGPT developer OpenAI, Microsoft also now has Bing Chat to compete with ChatGPT. So, regardless of whether the users favor ChatGPT or Bing Chat, Microsoft wins.
Microsoft added new generative AI tools to its Copilot Azure, Copilot for Service and Copilot Studio software-companion products. That’s besides the generative AI functionalities that Microsoft already added to Bing, Azure and other products.
Microsoft’s Homegrown AI Processor Could Be a Game Changer
On top of all that, according to Bloomberg, Microsoft recently introduced the company’s first “homegrown” AI “chip and cloud-computing processor.” However, per Reuters, Microsoft has no plans to sell its AI chips.
Instead, Microsoft can use these new homegrown processors to speed up the generative AI functionalities of the company’s own software products. The public got a peek at one of these new AI chips, called Maia, at a recent conference in Seattle.
Rani Borkar, a vice president who oversees Microsoft’s Azure chip unit, reportedly stated that the company is testing the new AI chip with Microsoft’s Bing and Office AI products. All in all, this could enable Microsoft to gain more control over its own supply chain while improving the company’s cost efficiency.
Microsoft Stock: Play This Game to Win
If you don’t currently have enough generative AI market exposure in your portfolio, there’s an easy solution. Conduct your due diligence on Microsoft and think about owning some shares of this tech titan.
At the end of the day, it’s a simple decision to assign an “A” grade to MSFT stock. Its value should continue to grow even after this year’s rally. So, you can count on Microsoft in 2023 and 2024 to lead the generative AI product field. In all probability, the company will frustrate the critics and short sellers, year after year.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
