Microsoft Gets an Upgrade as AI Narrative ‘Too Strong’ to Ignore. Why It’s Still Not a Buy.

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Microsoft Gets an Upgrade as AI Narrative ‘Too Strong’ to Ignore. Why It’s Still Not a Buy.
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Guggenheim analyst John DiFucci upgraded shares of Microsoft to Neutral from Sell.

Microsoft’s opportunities with artificial intelligence are enough for one Guggenheim analyst to upgrade his rating on the stock, but near-term uncertainties keep him from becoming bullish on the tech-giant.

“The Generative AI narrative is too positive a force to contend with, even though the troubling dynamics we thought might develop, did,” DiFucci said. “Windows has continued to struggle as it’s become obvious that an important driver of this business, PC shipments, will not benefit from resurging relevance of these devices and in hindsight, were a Covid beneficiary like Zoom and DocuSign. ”The pandemic did boost demand for personal computers as people worked and took classes from home.

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