Morgan Stanley Upgrades Outlook for Microsoft Ahead of Earnings
Ahead of its upcoming earnings report on July 29, Morgan Stanley has upgraded its outlook for Microsoft (MSFT), maintaining a bullish stance despite broader concerns about high capital expenditures among tech giants. Analysts Adam Wood and Josh Baer highlighted strong performance in Q3, with Azure showing robust growth and exceeding revenue expectations. They anticipate continued momentum into fiscal year 2027 as Microsoft expands its datacenter footprint to meet rising AI demand. Morgan Stanley reiterated an overweight rating for MSFT stock with a price target of $600 based on future earnings estimates. The firm sees Azure and Copilot as key growth drivers, though it also outlined potential risks such as macroeconomic headwinds and margin pressures from increased spending. Despite recent strains in Microsoft’s partnership with OpenAI, analysts believe the company remains well-positioned to benefit from long-term AI infrastructure investments.
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Topics: AI growth Azure Microsoft Morgan Stanley stock forecast