JPMorgan Boosts Microsoft Price Target to $625 on Copilot Growth

JPMorgan raised its price target for Microsoft (MSFT) to $625 from $550, maintaining an Overweight rating. The firm's analyst Samik Chatterjee noted that the market is underestimating Microsoft's applications business and Copilot profit potential.

Microsoft's AI infrastructure buildout is driving accelerating growth in Azure and M365 commercial cloud, with products like Copilot serving as internal customers, creating high-margin applications software supply. JPMorgan expects Microsoft to achieve high-teens compound annual growth in revenue and earnings per share from 2025 to 2029.

The firm's estimate that M365 Copilot has surpassed 30 million paid users is a key driver of this growth. With solid execution amid demand outstripping supply, JPMorgan projects approximately 45% constant-currency Azure growth in the September-ending first fiscal quarter.