Microsoft Stock Rises After AI Enhancements to Copilot App
On September 25, Microsoft announced new artificial intelligence (AI) capabilities for its redesigned Copilot app. These enhancements include full access to Word, Excel, and PowerPoint within the application, as well as a new feature called Home that integrates Chat and Cowork—an AI-powered tool capable of executing multi-step tasks. The company is also introducing natural language coding tools and Autopilet, described as a digital teammate with agent-like functionality. Analysts are responding positively to these developments; Stifel analyst Brad Reback upgraded Microsoft's stock rating from hold to buy and raised his price target from $530 to $575. Reback anticipates that the new Copilot features will drive at least mid-teens revenue growth for Microsoft in coming years. Additionally, he expects efficiency gains on Azure cloud infrastructure due to improvements in semiconductor chips, open-source AI models, and software.
Tickers: $MSFT
Topics: AI Copilot app Microsoft productivity tools stock performance