Microsoft's AI service innovation is highly praised by analysts! Jefferies lauds it as the "top smart choice"

According to Zhitong Finance APP, Microsoft (MSFT.US) grandly launched a series of significant updates to its cloud and artificial intelligence services at the Ignite conference held in Chicago on Tuesday, showcasing its strong capabilities and extensive layout in the AI technology field. At the conference, Microsoft not only demonstrated multiple improvements to the Microsoft 365 Copilot platform, including new AI agent features, but also previewed AI servers using NVIDIA's Blackwell GB200 chip and announced a series of system security upgrades. Additionally, Microsoft emphasized its customer growth in the AI field, particularly noting that nearly 70% of Fortune 500 companies are using Microsoft 365 Copilot.

Specifically, one of the highlights of Microsoft's latest AI updates is Copilot Actions, a feature currently in private preview that provides users with daily meeting summaries and consolidations of vacation emails and notes, significantly enhancing work efficiency. At the same time, Microsoft has made significant progress in the development of AI agents, which can not only respond to users in text form but also perform more complex tasks such as recording meetings and processing customer proposals. The new AI agents include a team translator and an employee self-service agent, used for real-time translation of voice conversations and assisting employees with HR or IT issues.

In terms of software development tools, Microsoft launched the Azure AI Foundry SDK, aimed at helping enterprises build and manage their own AI applications and agents. Meanwhile, the Azure AI Foundry agent service allows developers to combine AI agents to automate different business processes.

On the hardware front, Microsoft introduced Windows 365 Link, a small PC for accessing Microsoft cloud services, set to launch in April 2025. Additionally, Microsoft previewed AI servers using NVIDIA's GB200 chip, which will provide customers with access to AI-optimized virtual machines and cloud-based computers.

In the security domain, Microsoft launched the Microsoft Security Exposure Management platform, designed to help cybersecurity experts better understand the security status of enterprise networks and proactively prevent hacker attacks. At the same time, Microsoft has enhanced the security of AI applications through the data loss prevention feature of Microsoft 365 Copilot.

This update comes as Microsoft seeks to fully monetize its investments in the AI field over the past few years, including its stake in ChatGPT developer OpenAI. Previously, Microsoft reported first-quarter earnings that exceeded expectations, with AI contributing significantly to growth in the Azure cloud business unit. Microsoft's stock price has also risen over the past year, reflecting market recognition and expectations for Microsoft's AI strategy.

At the same time, several analysis firms and investment groups have expressed positive views on Microsoft's AI strategy. In a conference report on Wednesday, the Jefferies analyst team, led by Brent Hill, pointed out that data governance and access are the main challenges hindering the widespread adoption of Copilot, revealing that many companies are leveraging MSFT Purview to ensure effective governance of M365 Copilot At the same time, Jefferies reiterated its "top AI choice" rating for Microsoft and maintained a buy rating, setting a target price of $550.

JP Morgan analyst Mark Murphy also expressed strong confidence in Microsoft in a report. He pointed out that Microsoft stands out in the market, with generative AI (GenAI) integrated into both its applications and infrastructure stack. The core areas of AI product development not only cover Microsoft Copilots and Agents but also extend to M365, Azure, Windows, devices, hardware, security, data, and analytics.

Despite the recent poor performance of Microsoft's stock price, JR Research, under the Ultimate Growth Investing investment group, still maintains a buy rating for Microsoft.

In an analysis report released today, JR Research stated that although the expansion of AI faces certain limitations, Microsoft, with its diversified business, is expected to effectively address the short-term profit risks arising from increased capital expenditures on AI growth. Additionally, JR Research noted that Microsoft can combine its value-added packages with its existing product suite, which will further drive its revenue in AI monetization