The stock price of Microsoft is rising. The best investment you've ever made could be in artificial intelligence.

Artificial intelligence continues to be a priority for Microsoft MSFT +2.07%. Analysts see Microsoft gaining a competitive advantage by going after Google first.

The Bing search engine will feature generative AI technology powered by chatbot ChatGPT, Microsoft announced Tuesday. As a disruptive underdog, Microsoft can leverage its financial might while also playing an underdog role. 

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On Wednesday, the stock of Microsoft is up 1.4% in premarket trading after closing the previous day up more than 4%.

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As an AI tool developer, ChatGPT's OpenAI can use Microsoft's Azure cloud computing arm to provide the processing power required by AI tools.

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Microsoft has invested materially for many years to build a differentiated AI foundation across its tech stack, so we reiterate that AI is a generational technology that has been underappreciated in its story," Morgan said.  OpenAI investment, which Microsoft made years ago, may prove to be one of Microsoft's best investments.

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In its analyst report for Microsoft shares, J.P. Morgan maintained an Overweight rating and raised their price target from $265 to $305. 

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In the search engine market, every percentage point gain in market share represents $2 billion in annual advertising revenue opportunities, according to Microsoft. Statistics from Statcounter GlobalStats show Google owns 93% of the search market, while Bing holds 3%.

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Several Mizuho Securities analysts, led by Gregg Moskowitz, say Microsoft's AI additions are likely to benefit both consumers and enterprises. A Buy rating was maintained on Microsoft stock and its target price was raised to $300 from $280. 

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Mizuho analysts noted that AI could have a meaningful impact on MSFT's narrative later this year (especially as innovation speeds up), which may happen sooner than expected. 

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Despite Microsoft's recent announcements on artificial intelligence, its rivals have now retaliated. Bard, a conversational AI chatbot created by Alphabet (GOOGL), was announced on Monday by Google's parent company Alphabet GOOGL -6.02%. 

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"Microsoft has been among the first companies to promote its AI intentions widely, but will they reap more benefits than other companies? According to Trade Algo analysts, we do not think so, or we believe that assuming such a conclusion would be risky. The stock was maintained at Sell.