Leading tech company Microsoft Corporation (MSFT – Get Rating) reported better-than-expected results for the first quarter of fiscal 2023. With AI’s potential to transform the world, MSFT has been on the forefront of cutting-edge research in AI, integrating this powerful technology into its products and services. With the company flexing its muscles in cloud and AI, it is poised for robust long-term growth.
Given MSFT’s solid fundamentals and bright growth outlook, it could be wise to invest in this tech stock this week for substantial returns. In this piece, I will discuss several reasons why I am extremely bullish on MSFT.
During the third quarter of 2023, MSFT surpassed Wall Street’s revenue and earnings estimates, driven by growth in its cloud computing and Office productivity software businesses, and the software titan added that artificial intelligence (AI) products were stimulating its sales.
MSFT’s revenue in the third quarter increased 7% year-over-year to $52.90 billion, topping Wall Street estimates of $51.02 billion, according to data from Refinitiv. The company reported earnings of $2.45 per share, beating analyst estimates of $2.23, according to Refinitiv.
In the latest reported quarter, the company’s growth at its cloud business Azure was 27%, exceeding analyst expectations for 26.6% growth, according to the consensus of 23 analysts polled by Visible Alpha.
Most Microsoft sales come from selling computing devices, cloud systems and services, and software products to consumers and businesses. But MSFT grabbed headlines earlier this year with its partnership with ChatGPT creator OpenAI, as the tech company races to stake out its place in the generative AI field.
On January 23, MSFT announced a new multiyear, multibillion-dollar investment in San Francisco-based research outfit OpenAI, which grabbed headlines with the launch of ChatGPT. The deal marks the third phase of the partnership between the two companies, following MSFT’s previous investments in 2029 and 2021.
The renewed partnership is expected to accelerate breakthroughs in…
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