This article first appeared on GuruFocus.

Microsoft (NASDAQ:MSFT) could have more room to climb as its heavy artificial intelligence investments begin translating into stronger returns, according to Tigress analyst Ivan Feinseth.

Feinseth reiterated his Buy rating on Microsoft and raised his price target to $690, implying about 38% upside from recent levels. His view comes after Microsoft shares gained roughly 28% over seven trading sessions, leaving the stock about 4% higher year to date.

The analyst’s bullish case centers on Microsoft’s growing AI and cloud businesses. Azure revenue increased 43% year over year in the latest quarter, while management expects growth of about 45% in the current…