Will Microsoft co-pilot us to the moon? I don't think so

0QH
2023-03-19

$Microsoft(MSFT)$ BearishBearish

Will Microsoft Become the Winner of AI Battle?

The AI industry is a highly competitive market, with tech giants such as Google, Amazon, and IBM investing heavily in AI research and development. However, Microsoft has also been investing heavily in AI and has made significant progress in recent years. With the introduction of Copilot, Microsoft is taking its AI capabilities to the next level and is positioning itself as a leader in the AI industry.

Large User Base 

One of the reasons why Microsoft is well-positioned to win the AI battle is its vast user base. Microsoft 365 has over 300 million active users, making it one of the most widely used productivity suites in the world. This user base provides Microsoft with a significant advantage in terms of data collection, which is essential for training AI models.

NLP

Another advantage that Microsoft has over its competitors is its expertise in natural language processing (NLP) and speech recognition. Microsoft has invested heavily in developing its NLP capabilities, which are essential for building intelligent virtual assistants such as Cortana and Copilot. Microsoft's NLP capabilities also enable it to provide more accurate and relevant search results in Bing, which is another significant advantage.

Strong Ecosystem 

Finally, Microsoft has a strong ecosystem of partners and developers who are building AI applications on top of its platform. This ecosystem provides Microsoft with access to a vast pool of AI talent and expertise, which is critical for developing cutting-edge AI applications.

Summary 

Overall, while it is challenging to predict who will win the AI battle, Microsoft's significant investments in AI research and development, coupled with its vast user base and ecosystem of partners and developers, position it well to be a leader in the AI industry.


Short Term Bearish View on $Microsoft(MSFT)$ 

There is something easier to predict than the winner of AI Battle and that is how the stock will be going.

Based on the day chart above, there should be a resistance level around 293. MSFT Relativel Strength Index RSI is currently just over 70, i.e. in the overbought region. There could be more room for MSFT to run but I would like to see MSFT reject 293 in the following weeks so that I can buy some PUT options at the strike price of 292.5 or 295.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • pixiezz
    2023-03-20
    pixiezz
    I've always thought of Warren Buffett as a visionary investor, so it's surprising to me that he's never owned MSFT stock with its cash-rich balance sheet and continually innovative and varied line of products.
  • zinglee
    2023-03-20
    zinglee
    MSFT - I've had this stock for 20+ years since the last couple recessions, and it's been nothing but a gold mine!! Microsoft for life! I get more in dividends now than my original investment!
  • DaveLewis
    2023-03-19
    DaveLewis
    I agree. To win it needs to step up money on R&D. After all, OpenAI has admitted its success was just a coincidence.
  • nimbly
    2023-03-20
    nimbly
    Bill Gates recently added a huge amount of MSFT stocks. That's good enough for me. Can't go wrong with Microsoft.
  • bubblyx
    2023-03-20
    bubblyx
    looks like MSFT is trying to party like it is 1999 again. Hopefully it won’t end up with another 17 year hangover!
  • WendyDelia
    2023-03-19
    WendyDelia
    Battle between MSFT and GOOG. I think GOOG has better technology.
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