TSX runs higher on rate cut expectations
Investing.com - DA Davidson has reiterated its Buy rating and $650.00 price target on Microsoft (NASDAQ:MSFT), currently trading at $525.61, following OpenAI’s release of its latest model, GPT-OSS. The stock has shown impressive momentum, trading near its 52-week high of $555.45, with 22 analysts recently revising earnings estimates upward according to InvestingPro data.
The research firm noted that GPT-OSS represents OpenAI’s first open-source release since GPT-2 in February 2019, highlighting the significance of Microsoft’s commercial relationship with the AI lab.
Microsoft’s partnership with OpenAI is driving significant gains throughout its business, particularly with Azure, according to DA Davidson’s analysis.
The firm pointed to Microsoft’s agreement terms with OpenAI, which grants the tech giant right-of-first-refusal on either training or inference, as a notable driver of Azure’s recent outperformance compared to its hyperscaler peers.
DA Davidson also observed a material acceleration of Azure OpenAI Services in the fourth fiscal quarter of 2025, which is uplifting other AI services and core hyperscaler services on Azure, both growing faster than comparable product sets on either Google (NASDAQ:GOOGL) Cloud Platform or Amazon (NASDAQ:AMZN) Web Services.
In other recent news, OpenAI has announced a partnership with the U.S. General Services Administration to provide ChatGPT Enterprise to the entire federal executive branch workforce at a nominal cost of $1 per agency for the next year. This initiative is part of an effort to enhance efficiency in government operations by reducing time spent on administrative tasks. Additionally, OpenAI has appointed Omnicom Media Group’s PHD as its global media agency, marking a significant step in its strategy to expand marketing efforts worldwide.
Tevogen Bio Holdings Inc. is expanding its collaboration with Microsoft and Databricks to develop a beta version of its PredicTcell model focused on oncology. This effort aims to enhance the model’s accuracy by combining oncology data with an existing virology dataset. Meanwhile, Microsoft continues to receive positive attention from analysts, with Stifel reiterating its Buy rating and UBS raising its price target to $650, citing strong Azure growth and momentum in the company’s Fabric data platform. These developments reflect Microsoft’s ongoing strength in the tech sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.