Wedbush's Dan Ives praised Microsoft Corp.'s (NASDAQ: MSFT) performance after the company reported its March 2024 quarter earnings and beat revenue and earnings per share (EPS) estimates.
What Happened: Ives praised Microsoft CEO Satya Nadella for the company's performance in the AI and cloud computing space.
Ives compared Nadella to a "grandmaster chess player" and lauded Microsoft's Azure cloud platform for its growth in the AI sector. He also referred to the current state of AI as a "1995 Moment," indicating a significant turning point in the industry.
"For Nadella the grandmaster chess player another Picasso-like performance for Microsoft as Azure is firing on all cylinders and the AI Revolution plays out in front of our eyes. Our #1 AI Draft pick Microsoft hitting its next gear of growth."
Ives reiterated a price target of $500 for Microsoft stock, which is currently up 4.25% in premarket trading on Friday, at $416, according to Benzinga Pro.
"Another historic night for Big Tech as the AI Revolution and this 1995 Moment is now here," Ives added.
Why It Matters: Ives' comments come in the wake of Microsoft's strong performance in the AI and cloud computing sector. During the third-quarter earnings call, Nadella highlighted the strong demand for Azure, particularly in the field of AI, which has significantly contributed to acquiring new customers.
Microsoft's third-quarter revenue increased 17% year-over-year to $61.9 billion, which beat the consensus estimate of $60.804 billion. The tech giant reported quarterly earnings of $2.94 per share, which beat analyst estimates of $2.82 per share.
During the post-earnings call, Nadella also revealed that Microsoft had set new records for game streaming hours, console usage, and monthly active devices.
Price Action: Microsoft's shares were up 4.25% in premarket trading on Friday, after closing at $399.04 on the previous day, according to Benzinga Pro.