Microsoft stock has climbed 55% year to date in 2023, and one Wall Street analyst sees it running higher in 2024, thanks to its "unique AI position."
Oppenheimer analyst Timothy Horan on Tuesday reiterated his outperform rating on Microsoft stock with a price target of 410. He called Microsoft his "top large cap pick for 2024."
On the stock market today, Microsoft shares rose 0.2% to close at 373.26.
Microsoft stock is in the 5% buy zone following its Nov. 10 breakout from a cup base with a buy point of 366.78, according to IBD MarketSmith charts.
Microsoft Looks For Copilot Lift
"We remain very optimistic about their near-term and long-term prospects," Horan said in a note to clients. He expects the company to get a boost from its generative artificial intelligence offerings in the year ahead. Microsoft has added AI assistants called "copilots" to its software products, including its Office productivity suite.
"Microsoft stands alone by having the best AI infrastructure and LLMs (large language models), as well as the easiest applications to improve," Horan said. "They also have relationships with nearly every enterprise in the world, almost all of whom are looking to leverage AI immediately."
Last week, Microsoft scored upbeat research reports from Macquarie and Truist Securities.
Microsoft Stock Is On Three IBD Lists
Microsoft is on three IBD stock lists: Leaderboard, Long-Term Leaders and Tech Leaders.
Further, Microsoft stock is one of the Magnificent Seven stocks that have driven the market higher this year.
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