Microsoft (MSFT) at a Crossroads: AI-Driven Growth vs. Market Volatility
Microsoft's stock (MSFT) has weathered a turbulent six months, shedding 10% of its value despite robust growth in its Azure cloud platform. Azure's 40% year-over-year expansion, fueled by AI integration, positions Microsoft as a key beneficiary of the AI boom. Bernstein and Piper Sandler project bullish targets of $645 and $650, respectively, against a current price of $454.
The company's strategic bets on OpenAI—despite the latter's projected $115 billion losses through 2029—are funneling capital into Azure data centers, creating an indirect windfall. Morgan Stanley anticipates software spending growth to edge up to 3.8% in 2026, with Microsoft poised to capture disproportionate gains. The upcoming earnings report could validate or undermine the AI-driven Optimism surrounding the tech giant.
