Microsoft shares surge 1.01% to monthly high on Azure AI growth, analyst optimism

The share price rose to its highest level so far this month, with an intraday gain of 1.01%.

Analysts have reinforced a bullish outlook for Microsoft, with BMO Capital, Jefferies, and UBS all maintaining Outperform or Buy ratings. Price targets range from $625 to $730, reflecting confidence in Azure’s AI-driven growth and the rapid adoption of tools like Copilot across enterprises. A consensus rating of 1.25 (Strong Buy) underscores widespread optimism about the company’s strategic positioning in emerging AI markets and established software segments.

Microsoft’s financial performance highlights its market dominance, with $293.8 billion in revenue and 15.6% year-over-year growth. The company’s dual strategy—leveraging AI innovations while maintaining cost-efficient leadership in core products like Office 365 and Azure—has driven both short-term stability and long-term expansion. Analysts project high 30% to low 40% revenue growth for Azure in 2026, supported by new AI infrastructure and partnerships.

Recent partnerships, including a $30 billion Azure compute agreement with Anthropic and a $5 billion investment in the AI firm, have further solidified Microsoft’s role as a key infrastructure provider for advanced AI models. These moves, combined with on-device AI integration in productivity tools, align with broader adoption trends and could enhance enterprise engagement. UBS and others argue that Azure’s valuation remains justified if growth rates are sustained, cementing Microsoft’s leadership in the AI and cloud computing sectors.