MSFT is (IMHO) the best AI play out there
IMHO, the best AI play out there is not NVDA or AMD or GOOG .. it's MSFT
my thesis? they have the most well-defined revenue stream (net new revenue) from selling the new as copilot subscription attached to O365/W365, also on Azure platform, and also attached to CRM and other S/W offerings.
MSFT is an aggressive selling machine: If you know how aggressive MSFT is in pursuing new growth opportunities (like they did with Azure back in the 2014-2015), you can imagine how aggressive they will drive their sales force to "attach" copilot subscription to enterprise (productivity) accounts - Many of them already have the budgets and want to "show off" the use/adoption of AI in their "new way of work"
Subscription is a superior model: Subscription revenue is much more attractive/rewarding than one-time H/W sales (not only in rev amount, and recurrence, but also in margin) .. so this new pipeline of AI revenue should materialize into better profitability than what NVDA, ARM, AMD, INTC and other H/W vendors may realize.
** I will not try to predict any price moves or share any possible trade targets .. cause even if MSFT P&L is solid, good outlook, and wonderful chart - no one can predict the market/macro and we're in a very macro-sensitive market these days.. but i do have my plans :) - trying to ride the recent pattern of breakouts on the weekly chart,
If you'd like to further follow my analysis, here's the same chart showing the detailed (daily) view and the breakout pattern. Also showing the indicator set i use for inspecting momentum, strength and volume.
This is only a thought .. not a trade recommendation .. before you risk your trading capital, please DYOR -- good luck!
my thesis? they have the most well-defined revenue stream (net new revenue) from selling the new as copilot subscription attached to O365/W365, also on Azure platform, and also attached to CRM and other S/W offerings.
MSFT is an aggressive selling machine: If you know how aggressive MSFT is in pursuing new growth opportunities (like they did with Azure back in the 2014-2015), you can imagine how aggressive they will drive their sales force to "attach" copilot subscription to enterprise (productivity) accounts - Many of them already have the budgets and want to "show off" the use/adoption of AI in their "new way of work"
Subscription is a superior model: Subscription revenue is much more attractive/rewarding than one-time H/W sales (not only in rev amount, and recurrence, but also in margin) .. so this new pipeline of AI revenue should materialize into better profitability than what NVDA, ARM, AMD, INTC and other H/W vendors may realize.
** I will not try to predict any price moves or share any possible trade targets .. cause even if MSFT P&L is solid, good outlook, and wonderful chart - no one can predict the market/macro and we're in a very macro-sensitive market these days.. but i do have my plans :) - trying to ride the recent pattern of breakouts on the weekly chart,
If you'd like to further follow my analysis, here's the same chart showing the detailed (daily) view and the breakout pattern. Also showing the indicator set i use for inspecting momentum, strength and volume.
This is only a thought .. not a trade recommendation .. before you risk your trading capital, please DYOR -- good luck!
כתב ויתור
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