Microsoft (MSFT) Gets $540 Price Target as AI and Azure Surge

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Buzzing AI Stocks on Wall Street Right Now.  On June 30, Bernstein SocGen Group analyst Mark Moerdler reiterated an “Outperform” rating on the stock with a $540.00 price target. The firm quoted strong Azure cloud performance and strategic AI investments behind the rating affirmation.

Bernstein pointed out that Microsoft’s Azure cloud service has accelerated to 35% constant currency growth in the recent quarter, with management projecting continued strength in the following quarter, supported by a 1% foreign exchange tailwind.

As expected by the firm, the company’s capital expenditure growth has slowed. This deceleration is expected to grow slower than cloud revenue, which will create a favorable financial outlook for the company.

Microsoft (MSFT) Gets $540 Price Target as AI and Azure Surge

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The firm further talked about how Microsoft’s investments in artificial intelligence date back to 2019, positioning it well to capitalize on both traditional CPU and GPU revenue streams.

As per the firm, Microsoft has been successful in proving its ability to run both a cloud business and “the largest AI business” driven by its high-quality generative AI inferencing and applications.

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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