Hedge fund veteran Dan Ives believes one Mag 7 tech stock is undervalued and will soon see huge gains.
In a new CNBC interview, Ives says say that Microsoft (MSFT) could rise more than 30% from its current value as it expects artificial intelligence (AI) to generate revenue for the company following large-scale investments in the technology.
“[Microsoft’s] defend their territory. They’re going after developers, and that’s really at the forefront of the arms race that we’re seeing happening. I think these are the important steps, not just in terms of Copilot and build, but what will ultimately be Azure. “That’s why I think the market right now is misjudging Microsoft for what I still believe will be the monetization phase that will happen over the next six to 12 months.”
Ives believes Microsoft will reach $575, an increase of more than 34% from the $427 price per share at the time of writing.
Ives also says that AI technology is still in its early stages and will have a transformative impact on civilization in the coming years.
“I believe we’re still in the third inning of the AI revolution compared to where this nine-inning game is going. We can certainly have ebbs and flows in this market, but if you look at where Alphabet is, they’re front and center, they’re at the top of the heap right now. Amazon has clearly narrowed the gap. Microsoft is clearly doing a lot of great things in Azure…
We’re talking years, we’re talking about the Fourth Industrial Revolution in terms of what they’re aiming for.”
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