Stocks
Microsoft's Commercial Backlog Fuels 22% Upside Potential Amid Strong Azure Growth
Microsoft's massive $678 billion commercial backlog is driving up its potential upside to 22% amid strong growth in AI and Azure services.
The tech giant reported annual revenue of $331 billion, with Azure exceeding $100 billion in annual revenue, a 41% increase.
The contracted commercial backlog provides recurring revenue from AI and cloud services, fueling a price target of $590.43 per share.
Despite rising capital expenditures and OpenAI investment losses, strong Azure growth and the adoption of Microsoft's Copilot seats underpin confidence in sustained long-term growth.