Target price of $375! Wedbush: Microsoft is in a dominant position in the AI battle.

Wedbush analysts say that the war for market share in the artificial intelligence industry is similar to the TV series "Game of Thrones". They believe that Microsoft will be one of the big winners in this industry.

Microsoft's target price raised

Analysts led by Dan Ives raised Microsoft's target price from $340 to $375 on Monday and reiterated their outperform rating.

They said, "Microsoft's resilient cloud business and monetization opportunities in artificial intelligence make us more optimistic about the company."

They added that Microsoft is still firmly on their top investment list.

In recent days, stocks related to artificial intelligence have risen sharply after Nvidia's expected surge in demand for its AI chips broke consensus. Ives also said that Nvidia's forecast is favorable for Microsoft.

He said, "Nvidia's 'astonishing' performance guidance released globally is a direct barometer for Microsoft, as our recent survey further confirms that Microsoft's profit opportunity is much earlier than Wall Street expected."

Not just Microsoft

In this AI war, Microsoft is not the only beneficiary.

It is estimated that the market opportunity for artificial intelligence in the next 10 years will reach $800 billion.

Analysts also pointed out that Alphabet-C, Amazon, Oracle, IBM, Salesforce (CRM), and Palantir (PLTR) are all "actively" building AI product portfolios and artificial intelligence capabilities.

But Ives said that Microsoft is in a leading position in the AI arms race, and the company's next step is to monetize AI.

Wedbush analysts added, "We firmly believe that Microsoft's first step is Azure/Office 365, and the next step is ChatGPT/monetization of artificial intelligence in the consumer and enterprise fields, which will increase Microsoft's valuation per share by $40 to $50."