KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
Microsoft could be on the verge of another multi-year growth cycle, this time powered by artificial intelligence. According to Goldman Sachs, Microsoft is better positioned than any other software company it covers to monetise AI — with 37% upside potential from current levels.
Goldman reiterated its Buy rating and raised its price target to US$655 (from US$630), implying meaningful upside from the current share price around US$478.
Why Goldman Is Bullish on Microsoft
No Single Bet — Multiple Ways to Win
Rather than relying on one AI strategy, Microsoft has deliberately diversified its exposure, allowing it to benefit regardless of how the AI ecosystem evolves.
Strategic investments in OpenAI, Anthropic, and in-house AI models
Reduces dependency risk on any single AI partner
Enhances long-term optionality if OpenAI eventually IPOs
Goldman views this as a feature, not a flaw, especially in an industry where winners are still emerging.
Azure: AI Scale Without Over-Concentration Risk
Microsoft’s heavy AI-related capex is designed to be flexible, not fragile.
US$34.9bn capex in the latest quarter
Data centres built to support multiple customers and AI workloads
Uses external providers such as CoreWeave and IREN Ltd to handle near-term demand spikes
This approach allows Microsoft to capture upside from AI demand while limiting overbuild risk.
AI Agents + Office 365 = Structural Advantage
Microsoft’s biggest edge may lie in distribution.
Around 450 million users already on Office 365
Deep integration across applications, platforms, and cloud infrastructure
AI agents can be embedded directly into existing enterprise workflows
Goldman highlights that control over the full software stack gives Microsoft a decisive advantage in capturing AI-driven productivity gains.
Valuation Still Looks Reasonable
Despite its scale and AI exposure, Microsoft does not look expensive relative to peers:
Forward P/E: ~28x
Large-cap tech median: ~31x
Expected revenue growth: 18%, vs 14% for large-cap peers
This valuation-growth mismatch supports Goldman’s view that Microsoft deserves a higher multiple.
Street Sentiment Remains Overwhelmingly Positive
62 out of 64 analysts rate Microsoft a Buy or equivalent
Consensus target: just under US$630, with Goldman now above that
Key Takeaway for Investors
Microsoft isn’t betting on a single AI winner — it’s owning every layer of the AI stack, from infrastructure to applications to distribution. That breadth gives it uncapped upside with controlled downside, a rare combination at mega-cap scale.
If AI adoption continues to accelerate across enterprises, Microsoft may once again prove it can dominate the next tech era — just as it did with PCs, the internet, and cloud computing.
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