Markets are mispricing Microsoft's stock, says Wedbush Securities' Dan Ives
Speakers
Dan Ives
— Managing Director, Wedbush Securities
Summary
Dan Ives discusses Microsoft's Build conference, arguing the market misprices Microsoft's upcoming AI monetization phase. He comments on Alphabet's equity sale and the broader AI revolution, remaining bullish on Microsoft with a $575 price target.
- Dan Ives says Microsoft's developer conference shows important steps for Azure and Copilot.
- He believes the market misprices Microsoft ahead of a monetization phase in 6-12 months.
- He maintains a price target of $575 on Microsoft.
- He views Alphabet's $80 billion equity sale as a smart move given its strong position.
- He describes the AI revolution as being in the third inning.
- He sees quantum computing as a derivative of the fourth industrial revolution.
- He notes that big tech capex will reach $1 trillion next year.
Trade Ideas
Microsoft mispriced; monetization phase ahead.
The market is mispricing Microsoft because the monetization phase from AI will unfold over the next 6-12 months, supported by the developer conference announcements on Copilot and Azure, which are key steps in the AI arms race.
