Microsoft Buy Rating Reaffirmed as AI and Cloud Strength Support Unchanged $515 Price Target

In a report released today, Gregg Moskowitz from Mizuho Securities reiterated a Buy rating on Microsoft, with a price target of $515.00.

Gregg Moskowitz has given his Buy rating due to a combination of factors, including Microsoft’s stronger‑than‑expected quarterly results and robust cloud momentum. The company exceeded revenue expectations, with particularly strong contributions from its Azure business, which not only outperformed management’s prior outlook but is also guided to grow at an elevated high‑30s percentage rate in the coming quarter, well ahead of consensus.

He also highlights Microsoft’s accelerating artificial intelligence adoption, as evidenced by rapidly expanding AI-related recurring revenue and management’s willingness to significantly increase capital spending to capture long-term AI and cloud opportunities. Despite higher near-term capital intensity, he believes the company can sustain double-digit growth in both revenue and operating income, and notes that current valuation levels remain attractive relative to Microsoft’s durable growth profile, supporting his reaffirmed $515 price target and Buy recommendation.

In another report released today, Barclays also maintained a Buy rating on the stock with a $545.00 price target.