MSFT is the preferred 'trusted seller' for corporate AI adoption; upgraded to buy with $665 target, and technicals indicate a potential breakout to new highs.

Let's focus on Microsoft's stock charts, which have risen 50% since their 52- week low on June 25. It's clear we've made a strong comeback. These are the levels that many technical analysts, such as Jay Woods, have been watching, as we mentioned.

The company has been considered the "sensible person in the room" regarding some concerns about the slowdown of artificial intelligence. At least, that's the dialogue I was hearing.

We are currently trading 1.7% higher, and it received an upgrade this morning.

Corporate fears about artificial intelligence may push Microsoft to soar higher.

Microsoft's stock has already risen by about 1.75% thanks to this report. First, the report upgraded the recommendation from "hold" to "buy". With a new target price set at $665. We are currently trading at $526.35 .

Mali believes that corporate buyers concerned about AI security and governance risks are turning to the most reliable supplier or the most responsible operator. Mali says that Microsoft is the one they call "the responsible sensible one".

This is how they see the market's view of Microsoft when AI fears materialize and the time for actual spending arrives.

They say that as talk about the dangers of artificial intelligence to humanity increases, companies will start looking for these established, trusted companies with a proven track record.

They believe that Microsoft is in the best position here.

They say that AI dynamics will help Microsoft capitalize on strong pricing trends while also making gains from increased capacity in Azure services.

Therefore, this report seems to suggest that Microsoft may be the likely winner among those big names. For the fourth quarter, Azure's revenue grew by 43%. Remaining commercial performance commitments rose 84% to $678 billion, and they say this backlog of orders really fits with Milius' vision of buyers settling on the "trusted seller" premise.

So, we talk a lot about AI concerns and corporate anxiety, but Milius is taking a bold stance today that the more this anxiety persists, the more these companies will search for a trusted and proven name, and Milius believes that name is Microsoft.

Yes, and interestingly, if you recall just a few weeks ago when the talk about AI slowing down began, I came out with some sort of draft code of conduct, which was also interesting.

So, yes, an interesting note and a good reaction that we can clearly see. As I mentioned, technicians are also watching this as a potential breakout from these levels. This is clearly something that attracts a lot of people's attention at this level.

Yes, that has been the point of stagnation for the past month . They have shown signs in the last two trading sessions that they are pushing at this peak level around 524 to rise and take off.

They had what is known as an " inner candle," which is a tight consolidation moment, and a move down could have been negative, but a move up could have led to what we call a potential breakout towards its all-time highs at 550.

So, that's where I can see it hitting 550 very quickly. It's certainly a high-risk deal ahead of the Federal Open Market Committee meeting with the Nasdaq slowly retreating towards its all-time highs , but still, look how well they're doing at the moment . So, I like the idea of short-term hacking.

I am looking at the execution price of 535 for October 16 at 575 or lower.

Now, the risk is very high. It will be around 75%. I think this could easily knock on the door of 150% or more. Of course, if there were a shorter timeframe in which it could reach its own uptrend range at 550.

So, Microsoft has really good potential. Let's not forget that it's a favorite among retail investors on Wall Street. If they can maintain this momentum, and if they can accumulate and achieve record highs for consecutive days, we could see a very rapid upward trajectory in the near term.