After Microsoft (MSFT) reported better-than-expected fiscal third-quarter results, Goldman Sachs increased its price target on the shares to $480 from $450 while keeping a Buy rating on the name. The investment bank is bullish on MSFT’s AI business.
A development team working together to create the next version of Windows.
MSFT’s Azure Is Getting a Lift From AI
As AI expands, more data is being moved to the cloud, lifting Azure’s revenue, according to Goldman. The investment bank noted that Azure’s revenue jumped 35% versus the same period a year earlier, excluding currency fluctuations.
Goldman expects Azure to continue to grow its AI revenue rapidly during the current quarter, and it thinks the unit can also get a lift from boosts in “non-AI workloads.”
Other Positive Metrics
The number of users of Microsoft’s Copilot tripled last quarter versus the same period a year earlier, while more than 230,000 enterprises are utilizing Copilot Studio, the firm’s AI-powered graphical development tool.
Goldman estimates that MSFT’s free cash flow can rise 3% during the current fiscal year, while its earnings per share can jump 17%.
The Recent Price Action of MSFT
In the last month, MSFT has jumped 15%, while the stock has added 3.5% in the last three months.
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This article is originally published at Insider Monkey
