Microsoft shares close the day at a record high following the company's AI announcements. Yahoo Finance Live discusses how the announcements may impact the company.

Video Transcript

AKIKO FUJITA: --in Microsoft stock ending the day at a record high. Looking right now-- closing the day up about 4% there. And we got a number of analyst calls Seana, at least, weighing in on those announcement that Yusuf Mehdi that was just talking about one specifically coming from Dan Ives over at Wedbush. He's already got a $375 price target outperform, but he said as a result of the pricing around AI, the total addressable cloud AI market opportunity for Microsoft could increase cloud revenue annually by 20% by 2025.

So already a significant boost coming out of that, and then you add Microsoft copilot onto that, and we've certainly got some bullish calls on that too in terms of the potential.

SEANA SMITH: Yeah, Akiko. Ives calling this a game changer here for Microsoft going forward. We saw a lot of excitement not only from Dan Ives, but really from a number of analysts across the street. The stock was up over 6% in intraday trading. Barclays another name here weighing in saying that the pricing news is a major step for Microsoft's AI monetization. Also calling out that it was at the upper hand in terms of expectations, a view that we also heard from Brent Thill as well over at Jefferies.

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But when it comes to Barclays and similar to that revenue upside, Barclays saying that the revenue derived from these tools could be substantial assuming that high adoption rate. So there's a lot of excitement around this right now. What it could mean for AI-- what it could mean, excuse me, for Microsoft in a couple of years down the road, but very, very dependent on that adoption rate and how quickly businesses adopt AI. If you're judging at all based on the excitement that we've seen over the last several months, I think it's a safe bet to say that companies will adopt these types of products at a very, very fast rate.

AKIKO FUJITA: Yeah. And because of Microsoft's ecosystem, the expectations, they've already got this sort of built in, right? Built in, I don't know if you want to call it loyalty, but the user base is already there. And to Yusuf Mehdi's point there, when you think about how something like ChatGPT, for example, is being utilized right now, a lot of that is within the office space, so it's going to be interesting not just from a revenue perspective, Seana. I'm curious from a use case perspective, what we learn as a result of this too, and certainly sure we'll be getting a lot more from Microsoft.

SEANA SMITH: We certainly will be. But yeah-- but again, huge gains that we saw in the stock today. It did hit a record intraday high in early trading.