Microsoft (NASDAQ:MSFT) continues to lead the way in democratizing Gen-AI adoption by innovating across all layers of the tech stack, Goldman Sachs said Wednesday, citing positive takeaways from the Build event.
With its extensive offerings for both organizations and consumers, Goldman analysts believe the tech behemoth is well-positioned “to define how AI evolves into a more broadly used technology.”
Over the past 18 months, the company has built on earlier innovations, putting a greater focus on cost efficiency from infrastructure to applications and now hardware.
According to analysts, MSFT is establishing the core components that will ensure the long-term relevance of new technologies.
“For this reason, the company’s announcements - from Copilot extensions, to the distillment of foundation models and AI-enabled PCs - we expect Microsoft to be able to sustain its first-mover advantage to continue to be a dominant player in the age of Gen-AI,” analysts wrote.
“We reiterate our Buy rating and $515 PT as we see a long growth runway for the foreseeable future, with Microsoft well ahead of where it was during the prior major technology cycle - the cloud migration (where it now holds a formidable market position),” they added.