UBS has revised its price target for Microsoft (MSFT) to $525, reflecting a positive shift in investor sentiment due to advancements in artificial intelligence.
The research report highlights upcoming GPU capacity, trends in Azure, and partnerships with OpenAI as key factors driving interest in the tech giant.
The firm has adjusted its growth forecast for Azure from 35.6% to 34% for the fiscal quarter ending in March, citing new production capabilities expected between March and June of next year.
Despite this adjustment, UBS expects cost control measures to improve profit margins, leading to an increase in its earnings per share estimate for fiscal 2026 from $14.39 to $15.1.