Barron’s quoted Mark Moerdler, an analyst at the consulting firm Bernstein, as saying.MicrosoftOfAyeCloud computing services may be more profitable than initially expected. Buy now and the share price could rise by more than 20%.
Moerdler reiterated his “outperform” rating on Microsoft’s stock on Tuesday and raised his target price slightly to $400 from $398. Microsoft shares fell 0.1% to $328.65 on Tuesday.
He said: “Microsoft is already a leader in providing generative AI products, platform software, and design architectures to help customers monetize their data and AI. They are working on GPU/AI supercomputers to meet the strong demand.” Are actively investing in.”
According to Moerdler’s estimates, a single Nvidia A100 graphics chip could earn a cloud service provider like Microsoft $1.50 per hour, or $1,000 per month.Benefit, According to financial model calculations, without any additional software or services, the gross profit margin for the GPU rental business alone reaches 42%. “Generative AI has had less of a negative impact on (Microsoft’s) Azure profit margins than expected,” he said.
He also believes that Microsoft will add more high-margin technologies, including pre-built AI models and other AI services, to increase revenues and profits.
Microsoft itself is optimistic about its AI prospects. Earlier this month, Microsoft Chief Financial Officer Amy Hood confirmed the company’s previous forecast that the AI tools group’s revenue would reach $10 billion faster than any other software business in history.
finance(tagstotranslate)Microsoft(T)AI(T)Profit
