Can Microsoft, Salesforce overcome challenges for AI growth?
Microsoft (MSFT) is navigating a landscape of both tremendous opportunity and regulatory challenges, particularly around the evolving artificial intelligence (AI) sector. Brent Bracelin, Piper Sandler equity research analyst in cloud software and analytics, joins Catalysts hosts Madison Mills and Seana Smith to offer his outlook on the company's position along with Salesforce (CRM) in AI. "Microsoft, obviously, is also seeing early-stage benefits of AI and the app layer," Bracelin says. "You're now talking about a $10 billion-plus business growing triple digits as well." However, Bracelin notes that Microsoft's efforts to limit government regulation on AI adoption are critical, as export rules could slow progress. When talking about the impact of political uncertainty, he points out, “Microsoft is down 5% year to date, 15% below the high. Salesforce is down 11% year to date here based on the sell-off this morning." However, despite these concerns, Bracelin remains optimistic about the longer-term outlook. "In three quarters, you're going to see AI momentum start to build here and start to drive a change in the growth trajectory of this business," he adds, emphasizing that he sees this happening at Snowflake (SNOW). To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Josh Lynch
