Even though in the first half of fiscal year 2023 Microsoft was pressured by currency and macroeconomic factors, the corporation still managed to maintain its course for long-term growth and continue to invest in cloud technology and artificial intelligence development. According to LBLV analysts, today bigtech has every chance to remain a leader in its sector. This has a positive effect on MSFT price predictions.
Even though currency and macroeconomic factors pressured Microsoft in the first half of fiscal year 2023, the corporation still managed to keep the course for long-term growth and continue investing in cloud technology and the development of artificial intelligence. Broker etoro offers the opportunity to trade shares of this company. So it is recommended to read the review broker Etoro.
MSFT price prediction. What is known about the company?
Microsoft is the largest independent software developer in the world, and probably the most well known. At the very beginning of its activity the corporation offered to buy the Office suite, and, in fact, the Windows operating system. A little later it began creating enterprise solutions such as Azure, SQL Server, SharePoint, Microsoft Network, software for the Xbox system and many other services.
In the second financial quarter of 2011, the tech giant announced the purchase of Skype. Business diversification was the main reason for the fact that Microsoft gets more than half of its revenue from the global market, and not the U.S., where it was created.
Microsoft to invest $10 billion in neural network developer
It became known about the plans of Microsoft to invest 10 billion dollars in the company OpenAI, known for developing the ChatGPT chatbot. Following the funding, the startup could be valued at $29 billion; the publication Semafor, cited informed sources. This was also reported by letizo.com.
According to them, in addition to Microsoft, several venture capital firms may invest in OpenAI. It’s unclear whether the parties have agreed on final terms for the deal, but the documents sent to potential investors emphasized the intention to complete it by the end of 2022, Semafor writes. Microsoft and OpenAI themselves have so far refrained from commenting.
According to Semafor, the deal assumes that Microsoft will receive 75% of OpenAI’s profits until the initial investment pays off. Microsoft will get 49% of the company after the initial payment is paid back.
According to Bloomberg, Microsoft will invest cash in the company for many years, but the final terms of the deal could change. The companies have been in talks for months, the news agency points out.
ChatGPT is an advanced neural network with wide possibilities. It was launched on November 30, 2022, and immediately attracted public attention. ChatGPT can maintain a dialog in natural language, write poems, generate texts and program code, translate, answer all kinds of questions as a person, etc. CheckPoint Research found that the tool is gaining popularity among cybercriminals. Members of hacker forums have begun using ChatGPT to create malware and phishing emails.
Tesla CEO Elon Musk and investor Sam Altman founded openAI. Microsoft invested $1 billion in the company in 2019, and it was recently revealed that the software giant is going to integrate ChatGPT into its Bing search service and its office applications.
Company reporting and expectations for MSFT price target 2023
Microsoft reported for the second fiscal quarter, which ended in December 2022. It turned out that the company received $182 million less in revenue for this period than experts had forecast. At the same time, the EPS index increased by 0.02 dollars.
By the end of the current fiscal, the corporation expects to double its revenue and profit, which affects the MSFT price target of 2023. It has also stated that it will continue to invest in the AI and cloud technology sectors, thus betting on long-term investments.
Microsoft’s securities have lost a record amount of value over the past year and are now trading well below their historic highs. At the same time, the company manages to maintain a higher share price than its competitors. Today, this corporation remains one of the few that consistently pays dividends to its shareholders.
