JPM Raises MSFT Price Target to $625 on Cloud and AI Growth Prospects
J.P. Morgan has revised its price target for Microsoft (MSFT) to $625 by 2027, up from a previous estimate of $550. The investment bank cites expected growth in cloud services and artificial intelligence infrastructure as drivers behind this increase.
The bank's analyst, Samik Chatterjee, estimates that stronger demand for Copilot, Microsoft's suite of AI-powered productivity tools, could contribute between $24 billion and $41 billion in additional revenue. This figure includes potential revenue from AI credit sales.
Microsoft's Azure cloud business is also expected to gain from continued investment in AI infrastructure. J.P. Morgan expects Azure growth to accelerate while margins in its Intelligent Cloud segment stabilize, which could support earnings growth.