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▲ IREN, Microsoft (MSFT), Artificial Intelligence (AI), Cloud/AI generated image
Microsoft has undertaken a major reorganization, elevating its AI assistant Copilot beyond a mere chatbot to an enterprise-wide platform, leading to successive re-evaluations of its corporate value and upward adjustments of target stock prices on Wall Street.
According to U.S. financial media Stocktwits on September 26 (local time), Oppenheimer Senior Analyst Brian Schwartz maintained his 'Outperform' rating on Microsoft (MSFT) and raised his target price from the previous $515 to $570. The new target price reflects an additional upside potential of over 10% compared to the closing price of the previous trading day. Microsoft's stock showed strength, rising by about 4% in regular trading after the announcement of the Copilot ecosystem expansion.
Schwartz evaluated this Copilot reorganization as a pivotal moment that fundamentally changed the perspective of artificial intelligence investors. In an interview with CNBC, Schwartz stated, "Microsoft is our top pick," adding, "This announcement is very substantial and contributed to pushing Microsoft deep into the category of clear AI winners." He diagnosed that Copilot's evolution from a standalone chatbot to a kind of AI operating system has increased user retention time, built strong customer lock-in effects, and enhanced competitive defensibility. He pointed out, "Becoming an operating system and platform provider is followed by higher engagement, greater monetization opportunities, and strong longevity."
What Wall Street paid most attention to was the securing of a specific monetization model for large-scale AI computations. With the addition of new automation features such as Co-Work, Co-Development, and Autopilot, a usage-based billing (pay-as-you-go) system, based on credit or token consumption, has been fully introduced in addition to the existing monthly subscription model. This dual billing structure, where daily tasks are handled with a fixed subscription fee while additional revenue is generated from high-load computational tasks, is analyzed to act as a driver for accelerating revenue for Microsoft 365 and cloud service Azure.
Individual investors' sentiment is also heating up. In the Microsoft stock discussion room on the Stocktwits platform, a positive sentiment with a buy-dominant trend prevailed, and post trading volume remained at a high level. It is observed that Microsoft's stock price momentum will gain traction, overcoming concerns about the cost of AI infrastructure investment and demonstrating strong enterprise platform dominance and a clear path to monetization.
[Key Article Summary]
-Oppenheimer Senior Analyst Brian Schwartz raised Microsoft's target price from $515 to $570.
-As Copilot evolved from a chatbot to an AI operating system, customer retention time expanded and platform lock-in effects were maximized.
-In addition to subscription fees, a token-based pay-as-you-go billing model was introduced, securing a practical monetization path for high-cost AI computations.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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