AI is going well for Microsoft, but cybersecurity is not – Microsoft (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFT) faces significant security challenges, The Verge's Tom Warren reports. A series of high-profile security breaches have rocked Microsoft in recent years.

A report by the US Cyber ​​Safety Review Board found that Microsoft's security culture needs an overhaul.

Warren wrote that there is growing concern within the company that such an attack could seriously erode trust in Microsoft.

Microsoft's engineering and security teams have been proactively addressing these threats in response to continued attacks from Nobelium and Midnight Blizzard. Nobelium or Midnight Blizzard is the same Russian state-backed hacker; solar winds company (NYSE:SWI) incident.

The group recently spied on the email accounts of Microsoft executives and also stole source code.

These repeated attacks have alarmed many within Microsoft, prompting efforts to strengthen internal defenses and prevent further breaches.

Historically, Microsoft has also been targeted by Chinese government hackers.

The US Cyber ​​Security Review Board described last year's US government email attack as a “cascade of security failures” that could have been prevented.

At a recent internal leadership meeting, Microsoft CEO Satya Nadella and President Brad Smith emphasized the priority of security.

With AI and security as our primary focus, Microsoft rapidly deploys AI technology and faces new security risks as more customers move to the cloud.

As reported by The Verge, Microsoft reporter Mary Jo Foley recently called on Microsoft to stop marketing security as a premium service.

Similarly, AJ Grotto, former White House senior director of cyber policy, highlighted past issues during the SolarWinds breach where Microsoft oversold its logging capabilities, making it difficult for government agencies to assess their risk.

When it comes to revenue, analysts are optimistic about the upcoming third quarter results and expect stronger growth in Azure, especially with solid interest in AI services and CoPilot.

Analysts also warned of Microsoft's potential AI-driven revenue and free cash flow acceleration, pointing to the growing importance of AI in Microsoft's strategy and making Microsoft a top software contender. I mentioned it.

Microsoft stock has risen 43% in the past 12 months. Investors can gain exposure to stocks in the following ways: SPDR Select Sector Fund – Technology (NYSE:XLK) and Fidelity MSCI Information Technology Index ETF (NYSE:FTEC).

Price action: MSFT stock traded 3.93% lower at $393.09 at last check on Thursday.

Disclaimer: This content is created in part using AI tools, and reviewed and published by Benzinga editors.

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