Goldman Sachs Backs Microsoft Amid Enterprise AI Growth

Goldman Sachs has added Microsoft to its 'Conviction List', which highlights companies the firm believes will outperform the market. The list replaces Broadcom and ServiceNow, among others.

The conviction call is based on Microsoft's strong fiscal Q4 performance, with revenue exceeding $90 billion and a 43% growth in Azure cloud infrastructure. Microsoft 365 Copilot reached 30 million paid seats, further solidifying the company's position in the enterprise AI market.

Goldman Sachs argues that Microsoft has an 'ideal position' as AI shifts from training to deployment in enterprises. The firm maintains a $640 price target for Microsoft shares, which currently trade at $487.65.