The future of artificial intelligence (AI) is a challenging one, and there’s about as much potential for risk as there is for reward. Just ask Microsoft (NASDAQ:MSFT), who just unveiled pricing on its new Copilot system, and hit a record high in its share price.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Microsoft brought out all the details at its Inspire conference, and delivered a major blow to consumers. The Copilot system will set users back $30 per person per month, which represents a significant hike in the price of Microsoft Office software. The customers who would be eligible for Copilot were already paying anywhere from $12.50 to $57 per user per month, which means prices will nearly triple under the less-expensive plans. When some at the Inspire conference wondered if such a move might not ultimately shoot share prices in the foot by suddenly jacking up prices and having current customers look for alternatives, Microsoft was quick to remind attendees that Copilot is totally optional.
This is a valid concern, though; Microsoft will face stiff competition immediately from Google (NASDAQ:GOOG), who already brought out some AI features for Google Workspace. And, since Microsoft hasn’t put a release date on Copilot yet, that’s going to give other competitors looking into the AI space that much more time to get a product ready to go and attempt to seize the early adopter market.
Despite this, Microsoft is clearly a heavy-hitter. Analysts call it a Strong Buy thanks to 31 Buy ratings, three Holds, and one Sell. With an average price target of $354.26, however, those new highs mean Microsoft now has a downside risk of 2.17%.
