BMO Capital Markets analysts boosted Microsoft’s (NASDAQ:) price target to $385 per share, citing progress on the artificial intelligence (AI) front.

The analysts believe that AI can drive incremental revenue opportunities over the next few years for the Redmond-based tech behemoth.

“While we believe that MSFT remains in the early innings of its AI journey, we are encouraged by the company’s pace of development. MSFT continues to integrate AI Copilot throughout its portfolio, and we think Copilot can lead to incremental revenue generation opportunities over time,” they said in a note.

More precisely, analysts see a 4-6% upside to BMO’s total Office growth estimates over the next two years on the back of the AI boost. Overall, they say the AI can deliver a 1pt+ of upside to the broker’s total Microsoft growth estimates.

Microsoft shares are up a further half a percent today.