Microsoft (MSFT) is expected to see its AI efforts start bearing fruit in the first half of 2025, with a potential 15% upside, according to Citibank's co-head of U.S. software equity research, Tyler Radke. This optimism is driven by Microsoft's focus on cost optimization and efficiency in its AI investments, particularly in its Copilot AI assistant and humanoid robotics. The company's AI demand is also driving 'halo effects,' as customers come for AI services but stay for the higher-margin core Azure platform.

Microsoft's key business strategies in the AI sector include strategic partnerships, AI integration in products and services, investments in AI technologies, and expanding its AI talent pool. These strategies are expected to drive growth and market share for the company in the AI space.

C3.ai (AI) is another AI stock worth considering. The company operates as an enterprise AI software provider, offering an application development and runtime environment that enables customers to deploy AI solutions more efficiently. C3.ai's AI technology differentiates itself from competitors by providing a comprehensive, end-to-end AI platform that creates value for customers through improved performance and cost savings.

C3.ai's AI platform enables customers to develop and deploy AI solutions quickly and at scale, reducing the time and cost associated with AI development. The platform's flexibility and scalability make it well-suited for a wide range of industries, including manufacturing, healthcare, and finance.

C3.ai's stock has been a volatile ride lately, but one analyst sees a 15% upside in the next six months. Citibank's Tyler Radke believes Microsoft's investment in AI, especially through OpenAI, will drive earnings growth, predicting a 15% increase in the share price to $497, representing a 15% upside. Wall Street's consensus for C3.ai is $27.25, indicating a 27.51% downside. The analyst's price target is more optimistic than Wall Street's consensus, suggesting a bullish outlook on the company's AI prospects.

Investors looking to capitalize on the AI boom should consider Microsoft (MSFT) and C3.ai (AI) as two promising investments. Both companies are well-positioned to benefit from the growing demand for AI solutions and services, and their strong business strategies and AI technologies make them attractive options for investors seeking exposure to the AI sector.

In conclusion, the AI sector is poised for significant growth in the coming years, driven by increasing demand for AI solutions and services. Microsoft (MSFT) and C3.ai (AI) are two AI stocks that investors should consider buying before their expected price jumps. Their strong business strategies, AI technologies, and positive analyst outlooks make them attractive options for investors looking to capitalize on the AI boom.