Microsoft price target raised to $650 from $600 at Wells Fargo

Wells Fargo raised the firm’s price target on Microsoft (MSFT) to $650 from $600 and keeps an Overweight rating on the shares following quarterly results. It meaningfully raises Azure, Capex estimates as supply-demand imbalance now spills into 2026, carrying growth higher and investments greater. Importantly, management communicated intent to protect margins at all costs despite gross margin pressure, the firm adds.