Jefferies Financial Group Inc. Forecast 2025: Microsoft Corporation (MSFT.US), Alphabet Inc. Class C (GOOG.US), and Amazon.com, Inc. (AMZN.US) will emerge as winners in AI software.

Investment company Jefferies Financial Group Inc. stated that Microsoft Corporation (MSFT.US), Alphabet Inc. Class C (GOOG.US, GOOGL.US), and Amazon.com, Inc. (AMZN.US) could be the winners in the artificial intelligence (AI) software field next year. Analysts at Jefferies Financial Group Inc. said, "Microsoft Corporation is a major beneficiary of generative AI and will benefit from infrastructure (Azure AI) and application opportunities (various Copilots), but since the release of ChatGPT, the stock has underperformed iShares Expanded Tech-Software Industry ETF (IGV.US) by 19%. With Azure's re-acceleration and Copilot's momentum, we believe Microsoft Corporation will rise again." Jefferies Financial Group Inc. has a "buy" rating on Microsoft Corporation with a target price of $550. Meta Platforms (META.US) is also expected to benefit from generative AI as it can launch AI tools to about 4 billion users and over 200 million businesses through various applications. Analysts at Jefferies Financial Group Inc. said, "Meta can further leverage generative AI to explore new revenue streams beyond advertising through Llama and WhatsApp." Jefferies Financial Group Inc. analysts stated that Amazon.com, Inc. holds over 50% market share in the cloud services provider market, which over time should bring "strong AI revenue potential." Jefferies Financial Group Inc. maintains a "buy" rating on Amazon.com, Inc. and has raised the target price from $235 to $275. Another beneficiary in the AI software field is Snowflake (SNOW.US), and its CEO Sridhar Ramaswamy (appointed in February this year) might change the company's trajectory. Analysts at Jefferies Financial Group Inc. said, "We believe that after hitting bottom in 2024, Snowflake's business will reach an inflection point in the 2025 fiscal year, with strong order volume driving revenue growth, and significantly improving profit margins in the next 2-3 years." Jefferies Financial Group Inc. has raised Snowflake's target price from $180 to $200 and maintains a "buy" rating. Moreover, Alphabet Inc. Class C is considered a pioneer in the AI field and plans to launch more new products. These products will be promoted through its 7 applications with user numbers exceeding 2 billion each. Analysts at Jefferies Financial Group Inc. said, "Alphabet Inc. Class C's impressive performance in models allows them to make significant strides in cloud computing, although currently, Alphabet Inc. Class C lags behind peers in cloud computing."