TECH - Microsoft Leads AI Race Despite M365 Copilot's Slow Start: Analyst | Benzinga
Piper Sandler analyst Brent Bracelin reiterated Microsoft Corp (NASDAQ:MSFT) with an Overweight and a $455 price target.
After attending several developer sessions at the Microsoft AI event in San Francisco today, the analyst remained encouraged by the momentum around the most mature AI products (GitHub Copilot and Azure AI) but felt the new 3-month-old M365 Copilot remains in the early enterprise adoption phase.
Microsoft remained his favorite AI All-Star stock, but tactically, after the 57% move in 2023, it might need further AI proof points and time to grow into the premium multiple over the next 3-6 months.
Regardless, Microsoft has a first-mover advantage in AI that makes this a core growth holding.
GitHub Copilot Enterprise (scheduled to GA in February) features enough compelling enhancements to justify the $39/month price point (vs. GitHub Copilot individual pricing at $10/month and business version at $19/month).
The number of GitHub Copilot users has scaled quickly to 1 million+ paid developers as of ...