Microsoft: These are the Catalysts for 2024

Last Updated: 11. Januar 2024By

A variety of Wall Street analysts have placed Microsoft shares on their lists of top stock picks for 2024. Maybe you also have shares of the software giant in your portfolio? Let’s take a look together at the key catalysts and expert outlook for Microsoft in 2024.

AI assistant Copilot The Redmond-based company spent 2023 adding its AI assistant named Copilot to its product family. This included equipping the Windows operating system and Office productivity suite, as well as security and software development tools, with Copilot. In 2024, according to analyst firm Jefferies, Microsoft will begin to monetize its AI investments. The Microsoft shares are a „top pick“ of experts. The rating is „buy“ with a target price of 450 US dollars.

PC update cycle Microsoft could also benefit from a PC update cycle. The introduction of AI-enabled PCs and the planned end of support for Windows 10 in October 2025 will help drive sales of new PCs, say analysts. BofA Securities also names Microsoft shares as a „top buy“ for 2024. The investment bank sees AI driving incremental growth in Microsoft’s core Azure and Office franchises. The latest wave of AI represents a paradigm shift in the efficiency and productivity of businesses, according to BofA analysts. The bank rates Microsoft stock as „buy“ with a target price of USD 430.

Microsoft’s pace of AI innovation „breathtaking“ Mizuho Securities also lists Microsoft shares as a „top pick“ and reiterated its buy recommendation with a target price of USD 450. „The pace of AI innovation from Microsoft remains breathtaking, and we see Microsoft as the best-positioned software provider to benefit from this rapidly emerging technology,“ the analyst commentary said.

Microsoft stock on a weekly chart – ISIN: US5949181045


Technical view The stock was able to break out from a cup & handle formation at the end of 2023. Currently, we see consolidation of prices above the 40-week line (200-day line). Temporary pullbacks continue to offer opportunities to enter the stock of the software company.

Conclusion Analysts are in agreement on Microsoft stock – the software giant will benefit strongly from the emerging AI trend. Generative AI applications are expected to accelerate growth for Azure, Microsoft’s cloud computing infrastructure service. In the meantime, Microsoft’s Copilots should drive revenue growth in 2024.