What would it take to get Microsoft (NASDAQ:MSFT) stock to $400? It could happen if Microsoft succeeds in its quest to buy out a famous video-game developer.
Most likely, it’s only a matter of time before Microsoft and its shareholders get what they want.
That’s not the only catalyst for Microsoft stock, of course. Certainly, many financial traders are bullish about the company’s integration of generative artificial intelligence tools into its products.
While there are no guarantees of share-price appreciation, it’s safe to say that Microsoft will continue to offer growth and value to its loyal investors.
Analyst Eyes $400 for MSFT Stock
With 2023 halfway over, it’s clear that Microsoft made a smart move with its investment in OpenAI’s generative AI technology. Already, Microsoft has integrated best-in-class AI functionality into its Edge browser and other products.
Generative AI is here to stay; there’s no point trying to fight it. It makes sense that UBS analysts (according to TheFly) cited AI catalysts ahead when they upgraded MSFT stock from “neutral” to “buy.”
Along with that factor, the UBS analysts also believe that the “steep” growth deceleration of Microsoft’s Azure cloud business will moderate. With these considerations in mind, the analysts raised their price target on Microsoft stock from $345 to $400.
Is the Buyout of Activision Blizzard Inevitable?
It shouldn’t be too surprising if MSFT stock reaches $400 fairly soon. The market generally views Microsoft as an early and aggressive adopter of AI technology. There’s no reason to think that financial traders will abandon Microsoft now.
Besides, there’s a huge catalyst on the horizon: an acquisition that’s delayed but not scrapped. Specifically, Microsoft seeks to buy out Call of Duty developer Activision Blizzard (NASDAQ:ATVI).
The U.K.’s Competition and Markets Authority recently granted Microsoft an extra six weeks to plead its case in favor of the deal.
Meanwhile, U.S. District Judge Jacqueline Scott Corley gave the green light to the Microsoft-Activision deal. The U.S. Federal Trade Commission reportedly sought to temporarily block the deal, but Microsoft President Brad Smith called the FTC’s lawsuit “a demonstrably weak case.”
Then, a federal U.S. appeals court rejected the FTC’s move to block the Microsoft-Activision deal. Hence, that’s a notable win for Microsoft and its stakeholders.
Microsoft Stock Is Still a Solid Holding
It’s difficult to assign Microsoft stock a perfect “A” grade when the Microsoft-Activision deal is still working its way through the legal system. For the time being, it makes sense to give the stock a “B” grade with room to improve later on.
However, MSFT stock remains a solid portfolio holding for a wide range of investors. Possibly, the stock could dip if the Activision acquisition is delayed for a while longer.
But then, Microsoft’s long-term investors always seem to win in the end. Moreover, Microsoft’s generative AI integration definitely adds value to the company. So, feel free to hold your shares and don’t be too shocked if the stock reaches $400 before the year is finished.
On the date of publication, Louis Navellier had a long position in MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.