American tech giant Microsoft (MSFT) is committed to boosting Mexico’s AI (artificial intelligence) infrastructure by investing $1.3 billion in the country over the next three years. MSFT’s spending will go toward enhancing Mexico’s cloud computing and AI capacity, CEO Satya Nadella said at the Microsoft AI Tour 2024 in Mexico City, yesterday.
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Microsoft Focusing on AI Expansion in Mexico
Microsoft will use the $1.3 billion investment to improve connectivity and technology as well as ramp up AI adoption among SMBs (small and medium-sized businesses) in Mexico. While some of the well-known companies are already using MSFT’s AI tools, the aim is to reach 5 million Mexicans and roughly 30,000 SMBs with the newly committed investment.
MSFT will spend a part of the investment on the Artificial Intelligence National Skills program, which intends to make AI skills more accessible to the larger population. The company boasts a 38-year-long relationship with Mexico and hopes to invigorate the country’s tech and AI capabilities with its new investment. Microsoft firmly believes that strengthening AI will drive both the social and economic growth of the nation, while providing benefits like human productivity and cybersecurity.
Is MSFT Stock a Good Buy?
Most Wall Street analysts are highly optimistic about Microsoft. However, analyst Gil Luria of D.A. Davidson believes that the intense competition in the AI space has caught up with Microsoft, reducing the premium attached to the stock.
On TipRanks, MSFT stock has a Strong Buy consensus rating based on 28 Buys versus two Hold ratings. Also, the average Microsoft price target of $501.15 implies 16.8% upside potential from current levels. Year-to-date, MSFT shares have gained 14.8%.
