Artificial intelligence solutions can bring additional revenue of $100 billion to the US Microsoft Corp. by 2027, according to Evercore ISI analyst Kirk Matherne.
"Everyone probably agrees that the hype around artificial intelligence is running ahead of reality, but we believe that the impact of the technology will eventually spread across all industries and regions, and Microsoft is in a unique position to monetize the shift towards artificial intelligence in the next few years," Mathern said.
According to the analyst, the company can generate additional revenue by integrating the AI-based software assistant Copilot into its products, including Office and LinkedIn, growing demand for Azure cloud solutions, and increasing the market share of the Bing search engine.
According to its baseline scenario, in calendar year 2027, revenue growth will amount to $50 billion, and the optimistic scenario – $100 billion.
Since the beginning of the year, the company's capitalization has increased by almost 40% to $2.49 trillion, while the S&P 500 index has gained 11.5%.
Background. In May, the European regulator approved a $69 billion deal between Microsoft and Activision Blizzard.