- OpenAI is primarily focusing on Nvidia and AMD chips, despite testing Google's TPUs.
- Microsoft Corp (MSFT, Financial) is rated as "Outperform" by analysts, with a significant upside potential.
- GuruFocus' GF Value suggests Microsoft is slightly undervalued at its current trading price.
OpenAI, backed by the tech giant Microsoft (MSFT), is steering away from Google’s (GOOGL) tensor processing units (TPUs) for now, even though there have been recent discussions about potential partnerships. Despite OpenAI's ongoing testing of Google's TPUs, it remains predominantly reliant on the computing power of Nvidia (NVDA) and AMD chips to fulfill its rapidly growing artificial intelligence (AI) demands.
Wall Street Analysts Forecast
According to the insights from 49 analysts over a one-year period, Microsoft Corp (MSFT, Financial) carries an average target price of $516.16. The analysts' projections suggest a high estimate of $650.00 and a low of $423.00. This average price target highlights a potential upside of 4.75% from its current trading price of $492.74. For more comprehensive estimate data, explore the Microsoft Corp (MSFT) Forecast page.
When viewed through the lens of 62 brokerage firms, Microsoft Corp's (MSFT, Financial) consensus rating stands at 1.8, signaling an "Outperform" status. It is important to note that this rating system ranges from 1 to 5, where 1 indicates a Strong Buy and 5 denotes a Sell.
As per GuruFocus estimates, the projected GF Value for Microsoft Corp (MSFT, Financial) in the next year is calculated at $511.57. This reflects a prospective upside of 3.82% from its standing price of $492.74. The GF Value represents GuruFocus' assessment of the fair value at which the stock should ideally be traded. This is derived from historical trading multiples, previous business growth rates, and future performance projections. More detailed insights can be found on the Microsoft Corp (MSFT) Summary page.
