Wedbush’s Dan Ives hiked his price target on Microsoft to $600 on AI optimism.
‘Transcript:
CAROLINE WOODS: Microsoft continues to hit New all time highs Dan. And you’re getting more bullish. You just raised your price target on Microsoft to $600. Tell us why.
DAN IVES: I mean I think Microsoft when it comes to this is we’re going to be talking about 4 trillion eventually $5 trillion because it’s in their backyard in terms of AI. I think this when I look at the stack, the I stack commercial cloud growth I think is going to continue to massively accelerate. We’re seeing more and more Microsoft customers go full in on the stack. And that’s something where only 20% of Microsoft today is what I view as Cloud Next Gen Cloud Next Gen AI. As that becomes 5,060% and that’s really a whole revaluation that’s going to happen in the name $600 I ultimately think is probably conservative.
CAROLINE WOODS: Is Microsoft an Azure strength at the expense of Amazon AWS and Alphabet Google Cloud though, because you’re also bullish on those names?
DAN IVES: Yeah look I think they’re – Microsoft’s clearly leading when it comes to hyperscale and comes to cloud.
I do think AWS Google they’ve had success start to narrow the gap, but it’s not a zero sum game. I mean, you’re going to have all beneficiaries here. But no doubt like Microsoft and Nadella are leading when it comes to the infrastructure. When it comes to hyperscale. And that’s been a huge part of their success. And I don’t see that slowing down. I think investors are just starting to recognize now the next leg of this Microsoft story, as you go into that golden age of software.
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