Wedbush analyst Dan Ives set a $575 price target for Microsoft in a CNBC interview, representing more than 34% upside from the $427 per share price at time of writing. Ives expects artificial intelligence to enter a monetization phase for the company in the next six to 12 months following large-scale investments in the technology. The analyst characterized Microsoft as undervalued among Mag 7 tech stocks, citing the company's positioning in AI development through Azure cloud services and Copilot products.
Ives Sets $575 Microsoft Price Target on AI Monetization Thesis
Ives stated Microsoft could surge by more than 30% from its current value as AI begins generating revenue. "[Microsoft's] defending their turf. They're going after developers, and that's really front and center in this arms race that we're seeing play out, and I think these are the important steps, not just on Copilot and build, but what ultimately will be Azure, and that's why I think right now the market is mispricing Microsoft to what I believe is still going to be the monetization phase that's going to happen in the next six to 12 months," Ives said in the interview.
The $575 target represents a more than 34% increase from the $427 price per share at time of writing according to the source.
Analyst Characterizes AI Development as Third Inning of Revolution
Ives described the current state of AI technology as early-stage with transformative potential in coming years. "It's my view we're still in the third inning of AI revolution relative to where this nine inning game is going. We could definitely have ebbs and flows in this market," Ives stated.
The analyst referenced what he termed a "fourth industrial revolution" in describing the scope of AI development across the technology sector.
Ives Compares Microsoft, Alphabet, and Amazon AI Positioning
In his assessment, Ives stated that Alphabet is "front and center, they're top of the mountain right now." He added that "Amazon clearly has narrowed the gap" and noted "Microsoft obviously is doing a lot of great things in terms of Azure."
Ives framed the competitive landscape as an "arms race" with Microsoft focusing on developer engagement through its Copilot and Azure offerings.
FAQ
What price target did Dan Ives set for Microsoft?
Dan Ives set a $575 price target for Microsoft in a CNBC interview, representing more than 34% upside from the $427 per share price at time of writing.
When does Ives expect AI monetization for Microsoft?
Ives stated he expects the AI monetization phase to happen in the next six to 12 months following Microsoft's large-scale investments in the technology.
How did Ives describe the current stage of AI development?
Ives characterized AI development as being in the "third inning" of a revolution, stating the technology remains in early stages with transformative potential for civilization in coming years.
