Microsoft Price Target Raised to $440 Amid AI Safety Scrutiny
Microsoft Corp (NASDAQ: MSFT) has been upgraded by Rothschild and Co Redburn, which raised its price target to $440 from $400 while maintaining a Neutral rating. The revised valuation multiples reflect a broader re-rating across software-as-a-service stocks following Microsoft's latest earnings report.
The upgrade comes as the company navigates industry debates on AI safety standards, infrastructure buildout economics, and growing legal exposure tied to generative AI. Microsoft AI chief Mustafa Suleyman weighed in on AI regulation, stating that China's advances should not be used to justify removing guardrails around the technology.
Suleyman argued that regulation should focus on building shared norms and safety standards, emphasizing that such oversight need not slow the pace of AI development. The remarks followed the release of a Microsoft AI team manifesto outlining the company's principles for developing advanced AI systems.