Microsoft Secures 18-Month AI Deal with Codelco, Jefferies Sets $675 Target
Microsoft ranks among the top three holdings in Fidelity’s zero-fee U.S. Total Market Index Fund, which returned 81.75% over five years compared with 75.69% for the S&P 500. The company signed an 18-month memorandum of understanding with Codelco to pilot AI-driven analytics, automation and cybersecurity in mining operations, while Jefferies maintained a buy rating with a $675 price target.
1. Microsoft’s Role in Fidelity’s Zero-Fee ETF
Fidelity’s zero-fee U.S. Total Market Index Fund (FZROX) has charged a 0.00% expense ratio since its August 2018 launch, delivering 18.48% over one year and 81.75% over five years versus 17.69% and 75.69% for SPY over the same periods. Information Technology makes up 31.8% of the fund, with Microsoft ranking as one of the top three holdings alongside Apple and Nvidia, reflecting sustained passive demand for its shares.
2. AI Partnership with Codelco
Microsoft and Chile’s state-owned copper producer signed an 18-month memorandum to evaluate joint initiatives in advanced analytics, artificial intelligence, autonomous operations and cybersecurity across mining sites. The collaboration will feature joint governance for strategic tracking, early solution testing and shared best practices to enhance operational efficiency, sustainability and safety.
3. Jefferies Reaffirms Buy Rating
Jefferies has reaffirmed its buy rating on Microsoft with a $675 price target following its latest review of the company’s intelligent cloud, AI and automation strategies. The maintained rating underscores analyst confidence in Microsoft’s growth trajectory across key technology segments.