Microsoft price target raised to $600 from $500 at DA Davidson

Investing.com - DA Davidson raised its price target on Microsoft (NASDAQ:MSFT) to $600 from $500 on Wednesday, while maintaining a Buy rating on the stock. The new target aligns with the broader Wall Street sentiment, as Microsoft maintains a Strong Buy consensus with analyst targets ranging from $432 to $700. Currently trading at $492.05, the stock sits near its 52-week high of $500.76.

The research firm cited Microsoft’s execution of Azure growth as extending its lead in artificial intelligence as a key factor in the decision. DA Davidson identified Microsoft as its top mega cap pick. With a market capitalization of $3.66 trillion and impressive revenue growth of 14.13%, Microsoft’s financial health score on InvestingPro ranks as "GREAT," supported by strong profitability metrics.

The firm believes Azure can continue to gain market share while optimizing both short-term and long-term margins by balancing its data center buildout with offloading compute capacity.

DA Davidson referenced its proprietary developer data indicating that Azure is performing better than competitors AWS and Google (NASDAQ:GOOGL) Cloud in the cloud computing space.

Microsoft’s cloud business has been a significant driver of the company’s growth in recent years, with Azure becoming an increasingly important component of its overall business strategy.

In other recent news, Microsoft Corporation has amended its bylaws to introduce a process for addressing deficiencies in director nomination notices submitted by shareholders. This change, effective from July 1, 2025, allows shareholders to correct issues in their nomination notices within a specified period. Additionally, Microsoft has entered a five-year strategic partnership with the Premier League to enhance the league’s digital platforms using Microsoft’s cloud and AI technologies. This collaboration includes the launch of the Premier League Companion powered by Copilot, providing fans with access to extensive statistics, articles, and videos.

Bernstein SocGen Group has reiterated an Outperform rating on Microsoft, citing robust growth in its Azure cloud service and strategic AI investments. The firm’s report highlights a 35% growth in Azure cloud performance and anticipates continued strong performance, bolstered by favorable foreign exchange conditions. However, Microsoft is facing a six-month delay in the development of its next-generation AI chip, code-named Braga, which may impact its competitiveness compared to Nvidia (NASDAQ:NVDA)’s offerings. The delay is attributed to design changes, staffing constraints, and high employee turnover. A Microsoft spokesperson declined to comment on the delay report.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.