Microsoft Corporation (NASDAQ: MSFT) stock surged Tuesday after the software giant unveiled its plans to monetize its artificial intelligence (AI) innovations.
What Happens? Microsoft Corporation shared pricing information for its AI technology at the Inspire conference, causing excitement among investors.
The company announced via official blog post that enterprise customers would be charged $30 per month for each user of Microsoft 365 Copilot, an AI-based productivity tool. This pricing decision exceeded expectations and reflects Microsoft’s confidence in the product and its ability to set competitive prices, as noted by Jefferies analyst Brent Thill in a client note.
Thill maintained his buy rating on Microsoft stock with a price target of $400.
At the same time, Daniel Ives, an analyst at Wedbush Securities, described the AI pricing news as “eye-popping” and a development eagerly awaited by investors. Ives believes this announcement is very bullish for Microsoft’s potential in the cloud AI market. He rates Microsoft stock as outperform with a price target of $375.
Ives further predicted that more than 50% of Microsoft’s enterprise customers would adopt the company’s AI functionality within the next three years.
Market Response: The announcement had an immediate impact on Microsoft stock. The stock surged by 5.26% to reach $363.90 in afternoon trades today. Earlier during the session, the stock reached an all-time high of $366.78.
Microsoft Corporation MSFT NASDAQ: MSFT
