UBS has reiterated its 'buy' recommendation on Microsoft, with a price target of $510, implying a potential growth of 22% for the stock.

The brokerage emphasizes the positive impact of Microsoft's collaboration with OpenAI, particularly highlighting the expectation that the increase in Azure revenues will outweigh any negative impact on earnings per share (EPS).

Additionally, UBS suggests that Microsoft could benefit from a potential relaxation of the exclusive computing agreement with OpenAI.

This analysis underscores the strong partnership between the two companies and indicates a positive outlook for Microsoft's financial performance in the near future.