Microsoft's $115B Bet on AI Drives Stock Surge

Microsoft has made a massive $115.9 billion investment in artificial intelligence (AI), which is now playing a key role in determining its stock performance over the next 12 months.

The company's Azure cloud service recently surpassed $100 billion in annual revenue, driving a sharp stock recovery with a 31.74% gain over the past month.

Analysts are optimistic about Microsoft's AI investment, setting a price target of $609.58, implying nearly 19% upside, but caution that heavy capital spending and free cash flow decline pose risks to the company's future.