Microsoft (MSFT) edged higher Monday after Citigroup opened a "90-day positive catalyst watch" on the stock, citing its potential around artificial intelligence. The firm reiterated its buy rating and $420 apiece price target, contending that the Big Tech name will be "trading higher into year end with a rich catalyst path ahead."
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CNBC's Jim Cramer says that Microsoft's new Copilot product, an AI assistant that helps Microsoft 365 users create Office documents, hasn't been priced into the mega cap's share price yet and has been largely overlooked by the market. Microsoft is one of 35 stocks in Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club.
"I think it's better to put Microsoft front and center in AI," Cramer said. "They've got a real AI product. That is definitely, as Citi says, 'a rich catalyst.'" Shares of Microsoft deserve to be higher.
Here's a full list of the stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club.