'Intelligence Engine': Microsoft Stock (NASDAQ:MSFT) Notches Up on Sea Change

Business Insider

2 days ago

Tech giant Microsoft (MSFT) is going through a lot of change right now, and that change has been manifested in a range of ways. Mass layoffs, increasing return-to-office (RTO) mandates and more are part of the package at Microsoft these days. But behind it all is a greater move, as expressed by CEO Satya Nadella, as Microsoft goes from 'software manufacturer' to 'intelligence engine.' Call it what you will, but investors called it a decent idea, sending shares up fractionally in Monday afternoon's trading.
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Nadella is out to turn Microsoft into an ' intelligence engine,' looking to open up access to artificial intelligence and make it available to users the world over. A memo recently spotted noted, 'We must reimagine our mission for a new era. When Bill founded Microsoft, he envisioned not just a software company, but a software factory, unconstrained by any single product or category. That idea has guided us for decades. But today, it's no longer enough.'
Thus, Microsoft is working to start selling shovels in a gold rush. Instead of trying to build AI apps, it is trying to build the platforms that let other people build AI apps according to their needs. This makes Microsoft less a 'software factory' and more an 'intelligence engine' in line with Nadella's goals. The implications are potentially staggering; if Microsoft can develop a means to allow people to build the AI applications they want, then Microsoft could have an edge over every other AI developer in the field.
Ally Release Dates Leaked
But Microsoft has more immediate concerns as well, as release date information broke cover on the ROG Xbox Ally and Ally X. Reports suggest that Microsoft and ASUS' (ASUUY) new portable handset gaming platforms will be available sometime in October 2025, with preorders potentially starting as early as next Wednesday with the Gamescom event. Microsoft previously noted that the release window was 'holiday 2025,' which could indeed include October.
Pricing details may also come out during next week's Gamescom event, reports suggest, though Microsoft has not officially confirmed or denied any of this. Still, with the holiday shopping season quickly approaching—Halloween decorations are all over stores—we may see more information come out sooner rather than later.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 28.33% rally in its share price over the past year, the average MSFT price target of $623.34 per share implies 18.53% upside potential.