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Investing.com - Oppenheimer upgraded Microsoft (NASDAQ:MSFT) from Perform to Outperform on Wednesday, setting a price target of $600.00. The tech giant, currently trading at $496.62 and near its 52-week high of $500.76, has maintained strong momentum with a market capitalization of $3.69 trillion.
The upgrade reflects Oppenheimer’s view that investor focus on Microsoft’s growing AI revenue stream will intensify as Azure maintains strong growth momentum, providing both valuation support and upside potential.
The research firm believes Microsoft’s position as a long-term AI winner in software is not fully reflected in the current stock price, nor is the potential reacceleration of Azure’s growth in fiscal year 2026.
Oppenheimer highlighted that Microsoft is among a select few software vendors capable of delivering a "Rule of 60" business profile at unprecedented scale, which justifies premium multiples.
The firm’s analysis suggests Azure’s strong performance provides valuation support similar to how AWS underpins Amazon (NASDAQ:AMZN)’s valuation, while Microsoft’s AI revenue stream continues to scale rapidly.
In other recent news, Microsoft has been revising its roadmap for internally developed artificial intelligence server chips, opting for less ambitious designs through 2028. This decision aims to address development delays and maintain competitiveness with rival Nvidia (NASDAQ:NVDA)’s AI chips. Additionally, Microsoft has announced amendments to its bylaws, effective July 2025, introducing a process for shareholders to correct deficiencies in director nomination notices. On the financial front, DA Davidson has raised Microsoft’s price target from $500 to $600, maintaining a Buy rating, largely due to the growth of Azure and its competitive edge in artificial intelligence. Bernstein also reiterated an Outperform rating with a $540 price target, highlighting Azure’s 35% growth and strategic AI investments. In a strategic move, Microsoft has partnered with the Premier League to enhance fan engagement and match analysis using its cloud and AI technologies. This collaboration includes the introduction of the Premier League Companion, an AI-driven tool to enrich fan experience with extensive statistics and content. These developments reflect Microsoft’s ongoing efforts in AI and cloud services, as well as its strategic partnerships to enhance digital infrastructures.
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