Microsoft: Risks That The Market Does Not Yet See
Summary
- Microsoft Corporation's AI integration with OpenAI strengthens its core products defensively, making its ecosystem more indispensable but not driving significant long-term growth.
- The Apple-OpenAI partnership gives Microsoft a unique expansion opportunity into search, threatening Google and opening a new multi-billion-dollar market.
- Significant risks remain: Google may retaliate, Apple could become a competitor for OpenAI, and Microsoft lacks control over AI innovation.
- Given these risks and the lack of new product creation, I view MSFT stock as a reliable investment for capital preservation and rate it Hold.
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