Melius Research analyst Ben Reitzes said investors are seeking safer AI investment options after warnings from Anthropic CEO Dario Amodei and others over the potential risks of AI.
Microsoft Corporation (MSFT.US)'s traditional software business portfolio and cybersecurity products are expected to benefit under such circumstances. The researcher upgraded Microsoft from Hold to Buy, while raising its target price from USD465 to USD665.
Reitzes said Amazon.com, Inc. (AMZN.US) and Alphabet Inc. (GOOGL.US) may face threats from Meta Platforms, Inc. (META.US)'s Muse AI assistant, but believed Microsoft is more resilient to risks posed by Muse compared with companies that rely on advertising revenue.
Besides, Microsoft's existing customer base is conducive to promoting AI tools to clients. He viewed Microsoft's Autopilot AI agent will become the practical deployment direction for most enterprises.
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AASTOCKS Financial News
Website: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| AMZN (P) |
11137 |
180 (-) |
0.021 |
9.6 X |
| ALPBE (C) |
11184 |
470 (-) |
0.034 |
12.3 X |
| META (P) |
11138 |
475 (-) |
0.035 |
9.4 X |
