Melius upgraded Microsoft (NASDAQ: MSFT) to Buy from Hold and set a $665 price target. The firm cited rising enterprise demand for AI security and governance solutions. It expects Azure growth could exceed 50% by the fourth quarter of fiscal 2027 and raised its earnings estimates for fiscal 2027 and 2028.
Venture capitalist Chamath Palihapitiya backed CEO Satya Nadella’s caution about closed AI models, warning that companies could effectively “pay for intelligence twice.”
Red Wave Investments LLC, Cumberland Partners Ltd and other investment firms reported increasing their Microsoft holdings. The moves indicate continued institutional confidence in the company’s growth prospects, particularly in Azure and AI.