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Microsoft (NASDAQ:MSFT) remains among the best AI Actions Investors are currently looking for growth. Microsoft stock is certainly one of the best long-term options for investors looking for dominant long-term growth.
The reasons for this view are multiple. The company’s core business, software, is the cash cow that allows it to reinvest a considerable amount of capital into AI integrations for its flagship products.
The company’s cloud computing division continues to experience strong growth and is competing for market share in a fast-growing, highly profitable sector. Microsoft recently introduced Copilot+ PCs with advanced AI capabilities and continues to innovate in AI integration.
These factors alone justify the stock’s appeal. Let’s look at a few other reasons why investors are so bullish on Microsoft stock and why it’s a Magnificent 7 stock to buy and hold for the long term.
Commitment to OpenAI Expansion
Microsoft has strengthened its commitment to Hong Kong by Introducing Generative Artificial Intelligence Services into Educationfollowing restrictions imposed by OpenAI in the region.
In collaboration with the Jockey Club Primary School at the Education University of Hong Kong, Microsoft integrated AI tools, including chatbots and text-to-image generators powered by OpenAI’s GPT and Dall-E models, into the science lessons of approximately 220 fifth and sixth graders during the last school year.
The company has also expanded its presence in primary and secondary schools in Hong Kong after collaborating with eight local universities last year to promote AI services. In partnership with Gamenoodlesoup, a technology and education developer, since April 2023, the company has been tailoring Microsoft Azure cloud services to meet the specific needs of schools.
This is just one example of AI integrations that investors may not be aware of and that could drive additional growth over time. The number of verticals in this space is incredible, and Microsoft remains one of the best options to consider in this regard.
AI Related Events
Microsoft unveiled a key AI integration using Arm (NASDAQ:ARM) single-processor Surface event on May 20Highlights include the launch of Copilot Plus PCs, featuring built-in NPUs for local AI tasks like recall.
The Surface Laptop and Surface Pro Tablet equipped with Qualcomm (NASDAQ:QCOM) Snapdragon X processors, promising improved performance and efficiency. The event showcased new Copilot Plus PCs from a range of notable PC vendors.
Competition certainly exists in this space, with others looking to Launch an AI PC chipset end of 2025 for Windows PCs.
That said, the company’s status as a key PC software vendor should allow it to integrate its core AI technologies into new machines as they come out. It will certainly be important for investors to track how these new features evolve over time.
At Microsoft’s Surface event, the company also showed off a lineup of Copilot Plus PCs from major OEMs. Among them, the Swift 14 AI stands out for its Qualcomm Snapdragon X-series processors, offering options like the 12-core Snapdragon X Elite or the 10-core X Plus, with up to 32GB of RAM and 1TB of M.2 SSD storage.
Microsoft Stock Remains a Solid Buy
Microsoft is leveraging not only business software and artificial intelligence, but also gaming and social media to generate substantial revenue. Brands like LinkedIn and Xbox are contributing significantly to this. The company’s acquisition of Activision Blizzard has boosted gaming revenue.
Overall, it’s clear that there are so many verticals and industries that Microsoft can tap into for growth that investors are certainly anticipating a healthy dose of excitement for this stock.
Over the long term, MSFT stock is as reliable a long-term investment as you can get. Shares of the tech giant are up 23% year-to-date and 233% over the past five years. Analysts are predicting potential new highs with an average price target indicating a 12% upside, while the highest target of $600 suggests a 31% gain from prices at the time of writing.
As of the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the advice of InvestorPlace.com Publication Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
