OpenAI's ChatGPT Sees Over 10% Monthly Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy MSFT?
Source: seekingalpha
- Significant User Growth: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT is experiencing over 10% monthly growth, with approximately 800 million weekly active users, demonstrating strong appeal despite fierce competition in the market.
- Product Update Plans: Altman also mentioned that OpenAI plans to release an updated chat model this week, and its AI coding tool Codex has grown by about 50% in the past week, which will further enhance its product competitiveness.
- Ad Testing Launch: OpenAI is set to begin testing ads in ChatGPT today, facing criticism from competitor Anthropic; Altman emphasized the goal of making AI accessible to a broad user base that cannot afford subscription fees.
- Market Valuation Surge: OpenAI's valuation is expected to soar above $800 billion, while Anthropic's latest funding round could elevate its valuation to $350 billion, indicating strong growth potential for both companies in the AI sector.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.140
Low
500.00
Averages
631.36
High
678.00
Current: 401.140
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
OpenAI's ChatGPT Sees Over 10% Monthly Growth
- Significant User Growth: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT is experiencing over 10% monthly growth, with approximately 800 million weekly active users, demonstrating strong appeal despite fierce competition in the market.
- Product Update Plans: Altman also mentioned that OpenAI plans to release an updated chat model this week, and its AI coding tool Codex has grown by about 50% in the past week, which will further enhance its product competitiveness.
- Ad Testing Launch: OpenAI is set to begin testing ads in ChatGPT today, facing criticism from competitor Anthropic; Altman emphasized the goal of making AI accessible to a broad user base that cannot afford subscription fees.
- Market Valuation Surge: OpenAI's valuation is expected to soar above $800 billion, while Anthropic's latest funding round could elevate its valuation to $350 billion, indicating strong growth potential for both companies in the AI sector.
See More
Anthropic's Claude Surpasses OpenAI in Super Bowl Ads
- Ad Performance Comparison: According to EDO CEO Kevin Krim, Anthropic's two ads generated more consumer searches and website visits than OpenAI's three ads, indicating a shift in how AI companies are competing for mainstream users.
- Surprise Winner: The domain ai.com, purchased by Crypto.com founder Kris Marszalek, crashed shortly after its provocative ad aired, demonstrating the effectiveness of its strategy in driving consumer curiosity and engagement, making it the unexpected winner of the advertising battle.
- Strategic Differences: Krim noted that while Anthropic targeted consumers directly, OpenAI focused more on enterprise and programmer audiences, suggesting that this strategic divergence may have influenced their respective performances in the Super Bowl ads.
- Advertising Industry Trends: Approximately 16 companies, predominantly from the tech sector, purchased ads during this year's Super Bowl, with Krim stating that the competition among ads was more intense than the game itself, highlighting the innovation and changes brands are making to capture consumer attention.
See More
Four Tech Giants to Spend $625 Billion on AI Infrastructure
- Massive Investment Plans: The four tech giants are projected to collectively spend $625 billion on new data centers and AI infrastructure by 2026, with Alphabet at $185 billion, Amazon at $200 billion, Meta at $135 billion, and Microsoft at $105 billion, indicating fierce competition in the AI market.
- Market Reaction: Despite the large investment figures, analysts are skeptical about the positive impact on profits, as evidenced by Microsoft's stock plummeting 11% in a single day last week, reflecting concerns over slowing growth in its cloud computing segment.
- Investor Opportunities: The Global X Data Center and Digital Infrastructure ETF (DTCR) is seen as a great way for investors to capitalize on the rapidly growing AI spending trend, currently managing $1.1 billion in assets and yielding a 13.3% return in 2026.
- Optimistic Market Outlook: Grand View Research estimates that the data center construction market will grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, highlighting the accelerating trend in AI infrastructure development.
See More
AI Giants Ramp Up Capital Expenditure Plans for 2026
- Surge in Capital Expenditure: The four major tech giants are projected to collectively invest $625 billion in new data centers and AI infrastructure by 2026, although the uncertain returns may negatively impact shareholder profits.
- Individual Company Struggles: Microsoft's quarterly results revealed slowing revenue growth from its Azure cloud computing unit, leading to an 11% drop in its stock price in a single day, marking the largest decline since March 2020, reflecting market concerns over its spending plans.
- Data Center Market Outlook: According to Grand View Research, the data center construction market is expected to grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, indicating strong demand for infrastructure investment.
- Investment Opportunity Analysis: Despite fierce competition among the four giants for AI customers, investing in the Global X Data Center and Digital Infrastructure ETF (DTCR) may be an effective way to capitalize on this rapidly growing trend, as the ETF currently manages $1.1 billion in assets and has delivered a 41.3% return over the past 52 weeks.
See More
Amazon Stock Declines 11.1% Year-to-Date
- Amazon's Poor Performance: Currently, Amazon's stock is down 2.4%, with a year-to-date decline of 11.1%, indicating market concerns about its future growth prospects, which may affect investor confidence and lead to capital outflows.
- IBM Stock Fluctuation: International Business Machines (IBM) shares are down 1.9%, highlighting challenges in the current market environment that could impact its future investment appeal and market share.
- Microsoft's Resilience: In contrast to Amazon, Microsoft shares are up 1.9%, indicating relative strength in the market, which may attract more investor interest in its growth potential.
- Dow Component Dynamics: The stock movements of Amazon, IBM, and Microsoft reflect varying performances among Dow components, prompting investors to monitor how these changes affect overall market sentiment.
See More
AI Infrastructure ETFs Gain Investor Attention Amidst Software Sell-off
- Early AI Investment Cycle: Wedbush analyst Dan Ives highlights that the artificial intelligence investment cycle is still in its early stages, currently around year three of a projected ten-year cycle, with significant capital spending from Big Tech and governments expected to reshape technology leadership and drive growth in related ETFs.
- Software Stock Sell-off Overstated: Ives has re-added Salesforce and ServiceNow to his list of top 30 AI-focused stocks, asserting that concerns about permanent damage to traditional software business models are exaggerated, as enterprises are unlikely to quickly abandon existing software ecosystems, which could support inflows into enterprise software-heavy ETFs.
- Multiplier Effect of AI Chip Investment: Ives notes that for every dollar spent on Nvidia GPU chips, there is an estimated $8 to $10 increase in broader technology ecosystem investment, indicating a favorable dynamic for diversified technology ETFs that capture multiple aspects of the AI value chain amid the ongoing AI revolution.
- Diversified ETF Opportunities: The report emphasizes investment areas in AI development such as data infrastructure, cybersecurity, and autonomous vehicles, suggesting that ETF investors should focus on these sector opportunities to achieve diversification and manage stock-specific volatility as AI continues to gain momentum.
See More
OpenAI's ChatGPT Sees Over 10% Monthly Growth
- Significant User Growth: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT is experiencing over 10% monthly growth, with approximately 800 million weekly active users, demonstrating strong appeal despite fierce competition in the market.
- Product Update Plans: Altman also mentioned that OpenAI plans to release an updated chat model this week, and its AI coding tool Codex has grown by about 50% in the past week, which will further enhance its product competitiveness.
- Ad Testing Launch: OpenAI is set to begin testing ads in ChatGPT today, facing criticism from competitor Anthropic; Altman emphasized the goal of making AI accessible to a broad user base that cannot afford subscription fees.
- Market Valuation Surge: OpenAI's valuation is expected to soar above $800 billion, while Anthropic's latest funding round could elevate its valuation to $350 billion, indicating strong growth potential for both companies in the AI sector.
See More
Anthropic's Claude Surpasses OpenAI in Super Bowl Ads
- Ad Performance Comparison: According to EDO CEO Kevin Krim, Anthropic's two ads generated more consumer searches and website visits than OpenAI's three ads, indicating a shift in how AI companies are competing for mainstream users.
- Surprise Winner: The domain ai.com, purchased by Crypto.com founder Kris Marszalek, crashed shortly after its provocative ad aired, demonstrating the effectiveness of its strategy in driving consumer curiosity and engagement, making it the unexpected winner of the advertising battle.
- Strategic Differences: Krim noted that while Anthropic targeted consumers directly, OpenAI focused more on enterprise and programmer audiences, suggesting that this strategic divergence may have influenced their respective performances in the Super Bowl ads.
- Advertising Industry Trends: Approximately 16 companies, predominantly from the tech sector, purchased ads during this year's Super Bowl, with Krim stating that the competition among ads was more intense than the game itself, highlighting the innovation and changes brands are making to capture consumer attention.
See More
Four Tech Giants to Spend $625 Billion on AI Infrastructure
- Massive Investment Plans: The four tech giants are projected to collectively spend $625 billion on new data centers and AI infrastructure by 2026, with Alphabet at $185 billion, Amazon at $200 billion, Meta at $135 billion, and Microsoft at $105 billion, indicating fierce competition in the AI market.
- Market Reaction: Despite the large investment figures, analysts are skeptical about the positive impact on profits, as evidenced by Microsoft's stock plummeting 11% in a single day last week, reflecting concerns over slowing growth in its cloud computing segment.
- Investor Opportunities: The Global X Data Center and Digital Infrastructure ETF (DTCR) is seen as a great way for investors to capitalize on the rapidly growing AI spending trend, currently managing $1.1 billion in assets and yielding a 13.3% return in 2026.
- Optimistic Market Outlook: Grand View Research estimates that the data center construction market will grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, highlighting the accelerating trend in AI infrastructure development.
See More
AI Giants Ramp Up Capital Expenditure Plans for 2026
- Surge in Capital Expenditure: The four major tech giants are projected to collectively invest $625 billion in new data centers and AI infrastructure by 2026, although the uncertain returns may negatively impact shareholder profits.
- Individual Company Struggles: Microsoft's quarterly results revealed slowing revenue growth from its Azure cloud computing unit, leading to an 11% drop in its stock price in a single day, marking the largest decline since March 2020, reflecting market concerns over its spending plans.
- Data Center Market Outlook: According to Grand View Research, the data center construction market is expected to grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, indicating strong demand for infrastructure investment.
- Investment Opportunity Analysis: Despite fierce competition among the four giants for AI customers, investing in the Global X Data Center and Digital Infrastructure ETF (DTCR) may be an effective way to capitalize on this rapidly growing trend, as the ETF currently manages $1.1 billion in assets and has delivered a 41.3% return over the past 52 weeks.
See More
Amazon Stock Declines 11.1% Year-to-Date
- Amazon's Poor Performance: Currently, Amazon's stock is down 2.4%, with a year-to-date decline of 11.1%, indicating market concerns about its future growth prospects, which may affect investor confidence and lead to capital outflows.
- IBM Stock Fluctuation: International Business Machines (IBM) shares are down 1.9%, highlighting challenges in the current market environment that could impact its future investment appeal and market share.
- Microsoft's Resilience: In contrast to Amazon, Microsoft shares are up 1.9%, indicating relative strength in the market, which may attract more investor interest in its growth potential.
- Dow Component Dynamics: The stock movements of Amazon, IBM, and Microsoft reflect varying performances among Dow components, prompting investors to monitor how these changes affect overall market sentiment.
See More
AI Infrastructure ETFs Gain Investor Attention Amidst Software Sell-off
- Early AI Investment Cycle: Wedbush analyst Dan Ives highlights that the artificial intelligence investment cycle is still in its early stages, currently around year three of a projected ten-year cycle, with significant capital spending from Big Tech and governments expected to reshape technology leadership and drive growth in related ETFs.
- Software Stock Sell-off Overstated: Ives has re-added Salesforce and ServiceNow to his list of top 30 AI-focused stocks, asserting that concerns about permanent damage to traditional software business models are exaggerated, as enterprises are unlikely to quickly abandon existing software ecosystems, which could support inflows into enterprise software-heavy ETFs.
- Multiplier Effect of AI Chip Investment: Ives notes that for every dollar spent on Nvidia GPU chips, there is an estimated $8 to $10 increase in broader technology ecosystem investment, indicating a favorable dynamic for diversified technology ETFs that capture multiple aspects of the AI value chain amid the ongoing AI revolution.
- Diversified ETF Opportunities: The report emphasizes investment areas in AI development such as data infrastructure, cybersecurity, and autonomous vehicles, suggesting that ETF investors should focus on these sector opportunities to achieve diversification and manage stock-specific volatility as AI continues to gain momentum.
See More
