Microsoft Stock Rating Upgraded Amid AI Distribution Pricing Talks

JMP Securities has upgraded its rating on Microsoft stock to Market Outperform, citing talks between tech giants over AI distribution pricing.

The firm reported that China's Moonshot is in discussions with Microsoft, Amazon, and Google regarding revenue sharing at levels up to 30% for the K3 model.

This represents a significant attempt to price distribution in the artificial intelligence space, according to JMP Securities.

Microsoft shares are currently trading at $513.53 with a P/E ratio of 28.65, and analysts believe the company appears undervalued at current levels.

In related news, Moody's Ratings has reaffirmed Microsoft's Aaa senior unsecured ratings and issuer rating, citing its substantial operating scale and strong profitability.