We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microsoft Ventures to Fund Advancements in AI Startups
Read MoreHide Full Article
Reportedly, Microsoft Corporation (MSFT - Free Report) owned Microsoft Ventures has announced the formation of a new investment fund that is dedicated toward the betterment of artificial intelligence (AI) companies worldwide.
Initially the fund will invest in Element AI, an AI startup in Montreal. Later on, the fund will target other AI companies spread across the globe that are focused on making people and machines work in tandem so as to make education more accessible, create new jobs, empower the existing workforce and enhance treatments for various diseases.
With Satya Nadella at its helm, Microsoft is taking AI seriously. The company has already undertaken an initiative to integrate AI within Cortana (virtual assistant), Office 365 (cloud-enabled enterprise service) and Azure (the company’s flagship cloud platform).
Notably, the company also acquired SwiftKet, an AI startup earlier in 2016 for $250 million.
What this Means for Microsoft?
As per an IDC report, worldwide spending on artificial intelligence and cognitive systems is estimated to be over $47 billion by 2020, which is currently growing at a CAGR of 55.1%.
Given the huge scope the segment offers, it is no surprise that Microsoft is leaving no stone unturned to make its presence felt. However, with the presence of major players in the market such as Alphabet’s (GOOGL - Free Report) DeepMind, IBM’s (IBM - Free Report) Watson and NVIDIA’s (NVDA - Free Report) DGX-1, competition is intense and Microsoft needs more such initiatives and mergers and acquisitions to stay ahead of the curve.
Stock Performance Overview
Notably, shares of Microsoft have outperformed the broader Zacks Computer Software Services industry over the last three months. While the stock has returned 10.5%, the industry generated a return of only 1.3%.
The bullish behavior of the stock could be primarily attributed to strong cloud growth. The continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products will continue to generate top-line growth in the remainder of 2016.
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft Ventures to Fund Advancements in AI Startups
Reportedly, Microsoft Corporation (MSFT - Free Report) owned Microsoft Ventures has announced the formation of a new investment fund that is dedicated toward the betterment of artificial intelligence (AI) companies worldwide.
Initially the fund will invest in Element AI, an AI startup in Montreal. Later on, the fund will target other AI companies spread across the globe that are focused on making people and machines work in tandem so as to make education more accessible, create new jobs, empower the existing workforce and enhance treatments for various diseases.
MICROSOFT CORP Price
MICROSOFT CORP Price | MICROSOFT CORP Quote
Microsoft and AI
With Satya Nadella at its helm, Microsoft is taking AI seriously. The company has already undertaken an initiative to integrate AI within Cortana (virtual assistant), Office 365 (cloud-enabled enterprise service) and Azure (the company’s flagship cloud platform).
Notably, the company also acquired SwiftKet, an AI startup earlier in 2016 for $250 million.
What this Means for Microsoft?
As per an IDC report, worldwide spending on artificial intelligence and cognitive systems is estimated to be over $47 billion by 2020, which is currently growing at a CAGR of 55.1%.
Given the huge scope the segment offers, it is no surprise that Microsoft is leaving no stone unturned to make its presence felt. However, with the presence of major players in the market such as Alphabet’s (GOOGL - Free Report) DeepMind, IBM’s (IBM - Free Report) Watson and NVIDIA’s (NVDA - Free Report) DGX-1, competition is intense and Microsoft needs more such initiatives and mergers and acquisitions to stay ahead of the curve.
Stock Performance Overview
Notably, shares of Microsoft have outperformed the broader Zacks Computer Software Services industry over the last three months. While the stock has returned 10.5%, the industry generated a return of only 1.3%.
The bullish behavior of the stock could be primarily attributed to strong cloud growth. The continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products will continue to generate top-line growth in the remainder of 2016.
Zacks Rank and Key Picks
At present, Microsoft carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>