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On Thursday, Truist Securities expressed continued confidence in Microsoft Corporation (NASDAQ:MSFT), maintaining a Buy rating and a price target of $600.00. According to InvestingPro data, Microsoft currently trades near its Fair Value, with analyst targets ranging from $415 to $650, reflecting the market’s optimistic outlook on this prominent software industry player. The tech giant’s third-quarter earnings for fiscal year 2025 were highlighted as impressive by Truist Securities, particularly noting that Azure, Microsoft’s cloud computing service, surpassed expectations. Azure’s growth exceeded the high end of the company’s guidance, signaling a strong performance rebound in non-AI workloads. This performance contributes to Microsoft’s robust financial health, with InvestingPro data showing impressive revenue growth of 15% and a healthy gross profit margin of 69.4%.
The analysts underscored the significant contribution of artificial intelligence (AI) to Azure’s growth, which added 16 percentage points. This was partly due to some AI capacities becoming operational sooner than anticipated. The analysts at Truist Securities believe that the current positive momentum in AI could potentially lead to a continuous acceleration in Azure’s growth as the company plans to bring more resources online in the fiscal year 2026.
Microsoft’s recent earnings report demonstrated the company’s ability to not only meet but also exceed market expectations, particularly in the realm of cloud computing and AI technology. The strong performance in these areas is seen as a driving force behind Microsoft’s growth prospects.
The Truist Securities team’s reiteration of their Buy rating and two-year price target reflects their projection that Microsoft’s stock will continue to perform well in the market. This outlook is based on the company’s robust earnings and the anticipated expansion of its AI and cloud computing capabilities in the upcoming fiscal year.
In other recent news, Microsoft Corporation has reported strong financial results, leading several analysts to raise their price targets for the company’s stock. Piper Sandler increased its target to $475, noting the impressive growth of Microsoft’s Azure cloud services, which saw a 35% increase in constant currency terms. Jefferies also raised its price target to $550, highlighting Microsoft’s consistent demand signals and strong third-quarter performance. BMO Capital lifted its target to $485, citing Azure’s growth and the company’s positive guidance for the upcoming quarter. Wedbush Securities increased their target to $515, emphasizing the significant role of artificial intelligence in driving Microsoft’s growth.
RBC Capital Markets raised their price target to $525, following Microsoft’s robust third-quarter results and notable growth in AI services revenue. Analysts from these firms have maintained positive ratings on Microsoft, reflecting confidence in the company’s ongoing performance. Azure’s growth, particularly in AI, has been a standout factor across these analyses. Microsoft’s strategic investments in AI and cloud infrastructure continue to support its competitive position and growth trajectory. These developments indicate a strong outlook for Microsoft as it capitalizes on the growing demand for its cloud and AI solutions.
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