Billionaire investor Mark Cuban has placed Microsoft among his top stock picks, even as he warns that the era of traditional software is ending.

Cuban's latest stock portfolio, revealed by Detik Finance, includes Microsoft as the fifth-largest holding among eight selected stocks.

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Despite his caution about the software industry's future, Cuban views Microsoft as a key player in the artificial intelligence race.

Cuban's View on Software and AI

In an interview on TBPN earlier this year, Cuban stated that recent college graduates must learn to integrate AI into corporate structures.

He noted that many companies currently lack the knowledge to implement AI for competitive advantage.

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Cuban quoted Microsoft's CEO as saying that software is dead because everything will be customized to individual use.

Microsoft is a major financial backer of OpenAI, the company behind ChatGPT, which sparked the global AI surge.

Cuban shared his personal use of ChatGPT for writing software, text-to-video conversion, and even monitoring his medication and exercise routines.

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He expressed strong optimism about AI's financial potential, saying it could reshape individual wealth creation.

Cuban compared the current AI push to the early days of personal computers and smartphones, noting initial consumer hesitation but eventual widespread adoption.

He concluded that any innovator who makes AI a daily necessity will generate significant wealth.

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Microsoft's stock has received a price target increase from Truist, which reiterated a Buy rating with a target of $675.