Microsoft Zooms on AI-Powered Growth Amid Cloud Dominance
Microsoft's shares have risen by 31% since its Q4 earnings release in September 2026, reaching $518.22 as of current trading. This gain has been driven in part by the company's success with its Azure cloud platform, which grew 43% year-over-year and saw an 84% surge in commercial backlog to $678 billion.
The AI thesis remains intact for Microsoft, with analysts predicting significant growth potential from its investments in artificial intelligence. In fact, our model rates the stock a buy with high confidence, citing a price target of $611.28 over the next 12 months, representing an upside of approximately 17.96%.
While some caution is warranted regarding Microsoft's capex and free cash flow, which have risen significantly in recent quarters, the company's strong execution and growing backlog provide visibility into its future performance that its peers lack.