AI Catalyst Explained — TradingView News

It’s important to know why you own shares. Unfortunately, people can lose sight of why they should invest in Microsoft MSFT. Financial media can distract stock investors from important headlines. For the best exposure to AI technology, choose Microsoft stock.

That said, it’s good to be aware of the media hype and rumors surrounding Microsoft. So let’s see what all the fuss is about and then get to the heart of the discussion about Microsoft.

Microsoft and Nvidia confrontation

One day, not so long ago, Nvidia NVDA overtook Microsoft and became the most valuable company in the world. Shortly thereafter, however, Microsoft regained the title of the world’s largest business.

We like Nvidia stock and you can own stock in both companies (Microsoft and Nvidia) if you want. The financial media invents competition where there is none. After all, Microsoft is primarily a software company, while Nvidia is a hardware supplier.

The point is not to get caught up in media distractions. An investor’s job is not to chase the most valuable company at any given time.

Microsoft and Nvidia are AI leaders in their own ways. Microsoft made smart moves by investing in OpenAI’s ChatGPT generative AI technology and introducing Copilot, a suite of AI productivity tools.

So instead of getting caught up in less important news, let’s focus on what makes Microsoft such a valuable company.

Microsoft’s “execution nirvana.”

For what it’s worth, New Street Research analyst Pierre Ferragu doesn’t seem to be distracted by the lesser headlines. He opened his coverage of Microsoft stock with a “buy” rating and a $570 price target.

That would mean an eventual market capitalization of $4 trillion for Microsoft. That’s not an unrealistic goal, given Microsoft’s position as the market leader in AI-ready software and services.

Under the leadership of CEO Satya Nadella, Microsoft has introduced OpenAI technology across a broad range of products.

These products include Bing, Word, PowerPoint, CoPilot, and Azure. With its AI-powered Azure platform, Microsoft is a clear contender for cloud computing in the 2020s.

Under Nadella’s forward-thinking leadership, Microsoft has done a lot right.

We really can’t blame Ferragu for crediting Microsoft and Nadella with “achieving executive nirvana: higher profitability coupled with rapid and steady market share growth.”

Microsoft Stock: Just keep your eye on the prize

Some financial media pundits will try to get your attention by pitting Microsoft against Nvidia. But there really is no competition here. Both are fast-growing companies offering sought-after AI-ready products/services.

It’s important for Microsoft shareholders to stay focused and pay attention to the company’s premium AI offerings. With this in mind, it’s not hard to imagine Microsoft surpassing its $4 trillion market capitalization.

As such, Microsoft stock deserves a solid “B” rating and should be in most investors’ portfolios.

At the time of publication, Louis Navellier held long positions at MSFT and NVDA. Louis Navellier did not hold (directly or indirectly) any other securities positions mentioned in this article.

The InvestorPlace Research staff member primarily responsible for this article did not hold (directly or indirectly) any positions in the securities mentioned in this article.