AI updates from Microsoft are the 'tip of the iceberg' of the tech giant's capabilities and the stock can drive up another 16%, says Jefferies

• Microsoft stock could jump as its adds AI features to its Bing and Edge search products, Jefferies said. 
• The firm raised its price target for the tech giant to $310 from $275 a share and reiterated its buy rating. 
• Microsoft's "new Bing" was created with OpenAI, the research lab behind the popular ChatGPT tool. 

Microsoft's overhaul of its search engines to incorporate AI chatbot features - in a race set off by ChatGPT -  will provide a long-term lift for its stock, Jefferies said in driving up its price target on the Silicon Valley stalwart.