BofA Boosts MSFT Price Target to $600 Amid Strong Azure Growth

Microsoft's AI strategy is gaining momentum according to Bank of America analysts. The bank raised its price objective on Microsoft Corp (NASDAQ:MSFT) stock to $600, up from $500, based on 28 times its calendar year 2027 earnings-per-share estimate.

The upgrade follows Microsoft's fourth-quarter fiscal 2026 results, which showed Azure growth accelerating to 43% in the fourth quarter, with guidance calling for 45% growth in the first quarter of fiscal 2027.

Microsoft is building a broad portfolio of internal and external AI models, allowing customers to select the most cost-effective model for each task while maintaining governance over user actions.