Truist lowered the firm’s price target on Microsoft (MSFT) to $575 from $675 and keeps a Buy rating on the shares. The company reported another solid execution quarter with Azure constant currency growth of 39% and AI revenue surpassing a $37B run rate, as the management notes that demand remains supply constrained, the analyst tells investors in a research note. Investor focus remains on $190B of expected FY26 capex and margin pressure, but the firm believes this reflects a pull-forward of investment to meet supply constrained AI demand, with returns increasingly tied to scaling usage and monetization over time, Truist added.
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