The ChatGPT AI deal had been in the news in a big way after it was disclosed that Microsoft had invested an additional $10 billion in the AI module after starting off with a $1 billion investment in 2019. Many feel that the venture into AI could be a huge tailwind for the company’s surging cloud business. It has been reported that Microsoft will receive 75% of OpenAI’s profits until it claws back its investments, after which it will have a 49% stake in the firm.
Microsoft also has disclosed plans to launch an AI version of its Bing search engine powered by ChatGPT. It is a good bet it will be using AI in many of the company’s products and services.
Shareholders receive a 1.10% dividend. Microsoft stock has a $420 price target at Credit Suisse. The consensus target of $341.63 is closer to Wednesday’s final share price of $338.29.
Nvidia
This top company is making the chips that supply the incredible computing power required to run complex AI applications. Nvidia Corp. (NASDAQ: NVDA) provides graphics and computing and networking solutions in the United States, Taiwan, China, and elsewhere.
Its Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/Nvidia RTX GPUs for enterprise workstation graphics; vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building 3D designs and virtual worlds.
Its Compute & Networking segment provides data center platforms and systems for AI, HPC and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; cryptocurrency mining processors; Jetson for robotics and other embedded platforms; and Nvidia AI Enterprise and other software.
The company’s products are used in gaming, professional visualization, data center and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups and other ecosystem participants.
Morgan Stanley has set a $500 target price, and the consensus target is $467.95. Nvidia stock closed on Wednesday at $438.90.
Tesla
The electric vehicle and space travel pioneer enjoys a prominent slot in the massive 2023 rally. Tesla Inc. (NASDAQ: TSLA) designs, develops, manufactures, leases and sells electric vehicles and energy generation and storage systems in the United States, China and elsewhere.
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