Shares of Microsoft (MSFT 0.60%) took a step higher as the tech giant benefited from broader tailwinds in the stock market, a bullish analyst note, and the White House's executive order setting ground rules for artificial intelligence (AI).
The Windows maker finished the day up 2.3% after gaining as much as 2.9% earlier in the session.
NASDAQ: MSFT
Key Data Points
Microsoft Copilot could be a game changer
There wasn't much company-specific news out on Microsoft today, but Piper Sandler gave Microsoft a full-throated endorsement on the upcoming release of the Microsoft 365 Copilot, calling it an "iPhone moment" for the enterprise software titan. It also sees the product launch as a key step for it to capitalize on its first-mover advantage in generative AI.
The firm also projected that Microsoft AI revenue could scale up to $100 billion or more over the long term.
Tech investors seemed to like the executive order from the White House, which sets standards for safety and security for AI, promotes innovation and competition, and outlines privacy guidelines. The document appears to answer calls from a number of leaders in AI, including Tesla's Elon Musk and OpenAI's Sam Altman, for more regulation and guardrails in AI.
What's next for Microsoft?
Microsoft pleased investors with its fiscal first-quarter earnings report last week as growth from its Azure cloud infrastructure unit was strong and the company talked up its AI initiatives, including the soon-to-be-released Copilot for Microsoft 365.
CEO Satya Nadella said, "We are rapidly infusing AI across every layer of the tech stack," and the launch of Microsoft 365 Copilot will be the biggest test yet of its AI strategy and technology.
If the product is a success, Microsoft shares could easily take another leg up as it's one of the best-positioned companies in the AI race.
