Shares of Microsoft (NASDAQ: MSFT) saw a boost on Friday following the announcement of new artificial intelligence (AI) features for its revamped Copilot app.
Microsoft’s new AI tools aim to enhance workplace productivity
With the updated Copilot, users can now utilize the full capabilities of Word, Excel, and PowerPoint directly within the app. A new feature called Home will also support Chat and Cowork, an AI-driven tool that can handle complex tasks.
The company is also introducing user-friendly natural language coding tools to Copilot. Moreover, Autopilot, which Microsoft refers to as a digital teammate, will add more personal assistant-like capabilities.
Analysts are becoming more optimistic about Microsoft’s stock
Wall Street’s sentiment regarding Microsoft’s growth prospects powered by AI is improving. Stifel analyst Brad Reback upgraded his recommendation on the stock from hold to buy, increasing his price target from $530 to $575. This new target suggests an 11% upside for those purchasing shares at Friday’s close of $516.17.
Reback anticipates that Microsoft’s new Copilot features will support revenue growth of at least a mid-teens percentage over the next few years. He also expects improvements in Microsoft’s Azure cloud services as advancements in semiconductor technology, open-source AI models, and software take effect.
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