If you want to understand where the markets are going in 2023 then watch Microsoft.
But after a recent upturn, many investors may wonder if Microsoft is a stock to buy right now in 2023.
Microsoft started in 1975 at the dawn of the personal computer era by Bill Gates and Paul Allen developing PC operating system software. Windows was the main OS for PCs, and some of us still remember coding in GW-BASIC, a version of BASIC.
Experts are saying this will be the next $3 Trillion company, and it’s all thanks to generative AI.
Microsoft is the second largest component of both the S&P 500 and The Dow Jones Industrial Average indexes. On top of that, it’s the largest component of the NASDAQ-100.
Put that right in the middle of 2023’s hottest trend of artificial intelligence (AI).
Microsoft began investing in OPENAI all the way back in 2019 when an exclusive computing partnership with OPENAI was formed to build new Azure AI supercomputing technologies. *Ref: Microsoft News Center | July 22, 2019..
But everyone could not give a hoot about that until they released ChatGPT back in November.
So what is Microsoft’s stake in this? A whopping $13 Billion! And Microsoft has added AI to all its products.
Most people are tapping into OpenAI through Azure and as we know it can stamp out most anything you ask, and it’s only going to get better.
All inputs from users help to aid in the building of its information database. Although it won’t give stock recommendations, it is a pretty suitable tool for doing research.
5 Years From Now, You'll Probably Wish You Grabbed These Stocks. Recommended by TIME and The Economist.
Microsoft is being looked at as being around $90 Billion by its fiscal year end 2025. Morgan Stanley has a $415 price target on Microsoft shares. Since they’re currently trading around $338, this is a projected upside of 23%, taking the company into the $3 Trillion market cap club with the only current member, Apple.
The point the experts are making is that where Microsoft goes, so goes the rest of the market.
So what is OPENAI and who is behind it?
OpenAI is a research organization that aims to develop and promote friendly artificial intelligence that benefits humanity. It was founded in 2015 by a group of high-profile tech leaders, including Sam Altman, Elon Musk, Greg Brockman, Ilya Sutskever, John Schulman, and Wojciech Zaremba.
Sam Altman is a well-known entrepreneur and investor in Silicon Valley. He was the president of Y Combinator, a startup accelerator that has helped launch companies like Airbnb, Dropbox, and Reddit. Altman also co-founded Loopt, a location-based social networking app, which was acquired by Green Dot Corporation in 2012.
At OpenAI, Altman serves as the CEO and oversees the organization’s research goals and partnerships. Under his leadership, OpenAI has made significant progress in developing advanced AI models and technologies, including GPT-3, a language model that has been praised for its ability to generate human-like text.
Altman is also a vocal advocate for ethical AI development and has called for greater regulation and oversight of AI research and deployment. He believes that AI has the potential to transform society in profound ways, but that it also poses significant risks if not developed and deployed responsibly.
This Week’s Action Step
If you don’t have one, start your idea bank of your investing strategy, and capture 2-3 ideas there every day.
If you already have an investing strategy idea bank, consider building a simple template that you can fall back on each week.
That’s it for today.
See you next week.
*The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to change without notice in reaction to shifting financial and industrial market conditions. Past performance is no guarantee of future results, and the opinions presented cannot be regarded as an indicator of future performance. Please weigh out all parameters before investing or purchasing. Investing involves risk, which can include loss of principal. This information does not constitute and is not intended to be a substitute for specific individualized and professional tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Martin Hamilton and Guiding Cents the site recommends consultation with a professional and qualified tax advisor, CPA, financial planner, or investment manager. I provide examples, commentary, and content in the form of video, audio, and/or written for illustrative purposes only. Illustrations and commentary are not intended to be reflective of results you can expect to achieve.
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