Microsoft
MSFT
is planning to launch an AI-powered version of its search engine Bing, using ChatGPT, the OpenAI-launched chatbot, per The Information
report
.
OpenAI, the AI research shop backed by a $1 billion investment from Microsoft, publicly released ChatGPT for users to test in November. The chatbot is a software application designed to mimic human-like conversation based on user prompts and can respond to a large range of questions while imitating human speaking styles.
Microsoft is betting that the more conversational and contextual replies to users’ queries will win over search users by supplying better-quality answers beyond links, said the person, who did not want to be named discussing confidential product roadmaps that remain in flux.
Microsoft could launch the new feature before the end of March. Last year, the company announced its plans to integrate image-generation software from OpenAI, known as DALL-E 2, into Bing to let users create images based on simple text inputs.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart
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Microsoft Corporation Quote
Microsoft to Aid OpenAI on AGI Development
The latest collaboration highlights the tech giant’s goal to democratize the reach of AI responsibly, ethically and securely. Microsoft will aid OpenAI to realize its artificial general intelligence (AGI) goals.
As OpenAI’s projects become more sophisticated, Microsoft may be in a great spot to increase its stake. Integrating OpenAI’s next-generation AI alongside Bing (Microsoft’s search engine), Azure and even Xbox Gaming could help propel Microsoft to the forefront of innovative tech once again.
We believe that Microsoft is capitalizing on the rapid adoption of supercomputing systems, which is expected to be a key catalyst for the company. Per ResearchAndMarkets, the
global supercomputer market
is expected to grow to $21.07 billion in 2026 at a CAGR of 19.1%.
In May 2022, launched a service for Azure Cognitive Services, expanding its long-running relationship with OpenAI. The service will enable developers to gain limited access to a range of OpenAI’s AI models, including the GPT-3 base series, Codex series and embedding models.
The new OpenAI Service is aimed at helping developers deploy higher-quality models as application programming interfaces. They can infuse language capabilities into applications more efficiently through the OpenAI Service.
Moreover, Azure OpenAI Service will help developers to bring new reasoning and comprehension capabilities to the applications in particular, use cases, such as writing assistance, code generation and making sense of unstructured data.
Microsoft is leaving no stone unturned to augment AI capabilities to gain competitive edge over its peers in the digital transformation era.
Be it acquisitions, partnerships with companies that have achieved remarkable feat in AI or investments in AI research and development, Microsoft is clear in its stance of not foregoing any opportunity to enhance AI capabilities.
The company is infusing AI capabilities across its portfolio, be it Azure, LinkedIn, Office365, HoloLens products, gaming and other software and hardware solutions. These initiatives are enabling the company to secure deal wins which, in turn, favors the top line.
Zacks Rank & Key Picks
Microsoft currently carries a Zacks Rank #3 (Hold). Some top-ranked stocks from the broader Computer and Technology sector are
Bandwidth
BAND
,
Clearfield
CLFD
and
Zscaler
ZS
. While Bandwidth and Clearfield sport a Zacks Rank #1 (Strong Buy), Zscaler carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for Bandwidth’s fourth-quarter 2022 earnings has been revised by a penny to 4 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 25 cents to 37 cents per share in the past 30 days.
BAND’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 66.4% in the past year.
The Zacks Consensus Estimate for Clearfield’s first-quarter fiscal 2023 earnings has been revised 15 cents northward to $1.02 per share over the past 60 days. For fiscal 2023, earnings estimates have improved by 37.5% to $4.95 per share over the past 60 days.
CLFD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 39.7%. Shares of the company have risen 16.2% in the past year.
The Zacks Consensus Estimate for Zscaler’s first-quarter fiscal 2023 earnings has been revised 3 cents north to 29 cents per share over the past 30 days. For fiscal 2023, earnings estimates have moved north by 6 cents to $1.23 per share in the past 30 days.
ZS’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 60.2% in the past year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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