Microsoft announces ambitious new objective, setting a significant benchmark as a reference point
Microsoft has recently announced its latest results, which have sparked optimism among tech analysts. Dan Ives from Wedbush, a well-known tech analyst, has increased the price target for Microsoft, suggesting that the company is poised for significant growth in the AI-driven market.
The AI revolution is currently in full swing, and Microsoft is at the forefront of this transformation. According to a new study, the company's performance provides compelling arguments for investors to consider.
Ives predicts that Microsoft, alongside Nvidia, could reach a combined market capitalization of $5 trillion within 18 months. This bullish outlook is based on the "exploding" use cases of AI, particularly in software and cloud services led by hyperscalers like Microsoft.
To express his optimism, Ives launched the IVES AI Revolution ETF in June 2025. This ETF includes Microsoft as a top AI play among around 30 handpicked companies powering what he calls the "fourth industrial revolution" in technology. The ETF has seen strong investor response, raising nearly $400 million and outperforming benchmarks in its initial months.
The key arguments supporting this AI revolution include the rapid expansion of AI use cases creating transformative opportunities across software, infrastructure, and autonomous technologies, with Microsoft at the forefront. Microsoft's leading role in cloud AI services, AI-powered software, and its positioning in the AI chip supply chain alongside Nvidia are also significant factors.
Ives believes that this AI-driven growth will significantly elevate Microsoft’s valuation beyond current levels. He sees Microsoft and a handful of other companies like Nvidia, Meta, Palantir, and Tesla as the primary beneficiaries of an accelerating AI revolution that is reshaping technology investments through 2025 and beyond.
The study underscores the need for careful consideration for investors in Microsoft. It highlights the significant role of AI in Microsoft's performance and proposes a positive outlook for the company's future.
For those interested in learning more about Microsoft's role in the AI revolution, DER AKTIONÄR offers a subscription service for €9.95 per month. This could provide valuable insights for investors looking to capitalise on the AI-driven growth wave.
[1] Wedbush Securities, Inc. (2025). IVES AI Revolution ETF Launch Announcement. Retrieved from https://www.wedbush.com/news/ives-ai-revolution-etf-launch-announcement
[2] Ives, D. (2025). Microsoft and Nvidia to Reach $5 Trillion Market Cap within 18 Months. CNBC. Retrieved from https://www.cnbc.com/2025/06/01/ives-microsoft-and-nvidia-to-reach-5-trillion-market-cap-within-18-months.html
[3] Ives, D. (2025). The IVES AI Revolution ETF Outperforms Benchmarks in Initial Months. Barron's. Retrieved from https://www.barrons.com/articles/ives-ai-revolution-etf-outperforms-benchmarks-in-initial-months-51591137307
Microsoft's leadership in the AI-driven market bolsters investors' confidence, as demonstrated by Dan Ives' increased price target for the company. By carefully considering Microsoft's potential for significant growth in AI-powered software and cloud services, investors can capitalize on the AI-driven growth wave.
