Microsoft’s (MSFT) Azure Demand Is “Extremely Strong”— Analysts Expect Big Upside

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks Making Headlines on Wall Street. On November 25, Bernstein SocGen Group reiterated an “Outperform” rating on the stock with a price target of $645.00. Analysts believe Microsoft is poised for long-term upside driven by robust Azure demand, AI platform strength, and monetization potential.

Microsoft holds significant demand strength for Azure, with analysts noting how the tech giant’s ability to convert this demand into revenue remains underappreciated due to data center capacity constraints.

Moreover, the company’s AI platform capabilities are differentiated, which is why Azure will be the platform of choice for both AI and non-AI workloads. Meanwhile, it noted how o365 Copilot, despite still being a work in progress, holds long-term potential.

“We believe that (1) the demand strength is extremely strong for Azure; (2) Microsoft’s ability to convert that demand into revenue is underappreciated and bounded only by datacenter capacity; (3) Microsoft’s AI platform capabilities are differentiated and create a major driver for why Azure will be the platform of choice for AI and non-AI workloads; (4) O365 Copilot, while still a work-in-progress, has what it takes to be successful; and (5) AI margins will be similar to non-AI margins.”

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

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.