Citi analysts expressed optimism about Microsoft's Copilot AI, expecting increased adoption and revenue growth into fiscal 2027. This assessment diverges from the prevailing criticism surrounding Copilot, which has seen sluggish uptake and mixed feedback.
Citi analysts recently issued a note supporting Microsoft's Copilot AI, predicting its adoption will accelerate leading into fiscal 2027. They highlighted notable improvements in customer feedback and a promising forecast for Copilot's contribution to Microsoft's overall growth, projected until fiscal 2030.
Investor Jim Cramer expressed surprise at Citi's favorable stance on Copilot, contradicting numerous negative reports. He remarked that hearing about improved performance was unexpected, likening the situation to reading 'Alice in Wonderland'.
Following Citi's report, Microsoft shares rose over 3%, although the stock remains down 18% year-to-date. In light of ongoing challenges in the enterprise software market, Citi also adjusted its price target for Microsoft to $570 from $620.
The AI sector has faced scrutiny, with stocks like Salesforce down 36% year-to-date due to fears of disruption. This trend was exemplified by IBM's recent software issues, which resulted in a significant stock drop.
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Citi analysts expressed optimism about Microsoft's Copilot AI, expecting increased adoption and revenue growth into fiscal 2027. This assessment diverges from the prevailing criticism surrounding Copilot, which has seen sluggish uptake and mixed feedback.