Baird Begins Coverage of Microsoft (MSFT) Stock

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Quantum Computing Stocks to Invest In Right Now. On November 14, Baird began coverage of the company’s stock with an “Outperform” rating and a price objective of $600. As per the firm, Microsoft Corporation (NASDAQ:MSFT) continues to lead the AI revolution with infrastructure and applications, thanks to its partnership with OpenAI. This offers an end-to-end AI platform for enterprises and consumers.

In a different development, OpenAI announced that Microsoft Corporation (NASDAQ:MSFT) supports the OpenAI board moving forward with the formation of a PBC (public benefit corporation) and recapitalization. After the recapitalization, Microsoft holds an investment in OpenAI Group PBC of ~$135 billion, making up ~27% on an as-converted diluted basis. Furthermore, OpenAI has contracted to purchase an incremental $250 billion of Azure services.

Microsoft Corporation (NASDAQ:MSFT) announced that it plans to increase its total AI capacity by more than 80% this year, and approximately double its total data center footprint over the upcoming 2 years, showcasing the demand signals.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.