Wedbush is bullish on Microsoft, with analyst Dan Ives saying artificial intelligence is the company’s ‘iPhone moment.’

Microsoft jumped to an early lead in the AI wars, thanks to its partnership with OpenAI. The company was able to gain an upper hand over its rival Google, leaving the search giant scrambling to catch up.

According to MarketWatch, Ives raised Microsoft’s target price to $450 per share, an increase of $25.

“We view this as Microsoft’s ‘iPhone moment’ with AI set to change the cloud growth trajectory in Redmond over the next few years,” Ives said.

Ives cited Microsoft’s efforts to roll out AI across its platforms and the potential to convert its existing user base to its AI platforms.

“In a nutshell based on our recent work in the field we believe over the next three years over 60% of its MSFT installed base will ultimately be on this AI functionality for the enterprise/ commercial which changes the landscape,” Ives said.

“We continue to believe this is a ‘1995 Moment’ with a transformational tech spending wave not seen since the start of the Internet in the mid 90’s with AI now hitting the shores of the tech sector,” Ives added.

In our own coverage of the AI wars, we made the case that Microsoft has a significant advantage over Google, threatening the search giant’s core business for the first time. What’s more, Microsoft appears to be outmaneuvering Googleon multiple fronts.

If Ives is correct, and AI represents the company’s ‘iPhone moment,’ Microsoft gains may be just beginning.