Bloomberg expects the generative artificial intelligence (AI) market to compound at 42% annually to reach $1.3 trillion by 2032. Investors might assume Nvidia is best positioned to benefit given its leadership in machine learning processors. But some Wall Street analysts see (NASDAQ: MSFT) as the bigger winner because it can monetize AI across a broader range of infrastructure and software products.

Indeed, CFRA analyst Angelo Zino recently wrote that Microsoft is "best positioned to monetize generative AI given its ample offerings and pricing power." He listed cloud services, software copilots, and OpenAI large language models (LLMs) as key AI revenue streams in the future.

Likewise, Morgan Stanley analyst Keith Weiss believes Microsoft is "best positioned in software to monetize GenAI across infrastructure and apps." And Oppenheimer analyst Timothy Horan recently noted that "Microsoft stands alone by having the best AI infrastructure and LLMs."

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Source Fool.com