Balancing Near-Term AI Capex Concerns With Long-Term Cloud Upside: Why Microsoft Remains a Buy

Goldman Sachs analyst Gabriela Borges has maintained their bullish stance on MSFT stock, giving a Buy rating yesterday.

Gabriela Borges has given his Buy rating due to a combination of factors that balance near-term uncertainty with attractive long-term upside. She notes that while Microsoft shares have underperformed since the last earnings release amid worries about rising capital spending and Azure’s competitive stance, current expectations already reflect much of this caution.

Borges highlights that Azure is still growing at a robust high-30s percentage rate in constant currency, even as capacity remains tight and management prioritizes internal AI workloads. She also underscores that elevated AI-driven capex, though pressuring sentiment now, is aimed at expanding Microsoft’s long-term cloud and AI opportunity set, supporting her positive view on the stock’s risk/reward profile.

According to TipRanks, Borges is a 4-star analyst with an average return of 4.6% and a 49.38% success rate. Borges covers the Technology sector, focusing on stocks such as Microsoft, Workday, and Snowflake.

In another report released yesterday, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a $435.00 price target.