Macquarie: Maintains Microsoft’s (NASDAQ:MSFT) neutral rating and $241 price target

Macquarie analyst Sarah Hindlian-Bowler noted that OpenAI announced GPT-4, the latest version of its GPT AI model, a significant improvement over previous model versions, and Microsoft (NASDAQ:MSFT) also announced on Tuesday that the new Bing Search has been running on an earlier version of GPT-4 for the past five weeks. While the line says generative AI is “in a hype cycle,” it’s “still fairly real” and GPT-4 is “the current industry standard.” It’s hard for investors to understand who will win and who will lose, but Macquarie believes Microsoft is a “clear winner” given its improvements to Bing, the size of the search market and Google’s current dominance. The bank maintained a neutral rating on Microsoft stock and a $241 price target.

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