Melius upgraded Microsoft to Buy from Hold and set a $665 price target. The firm cited growing enterprise demand for robust AI security and governance.
Melius said Azure growth could surpass 50% in the fourth quarter of fiscal 2027. It also raised its earnings forecasts for fiscal 2027 and 2028.
Red Wave Investments and Cumberland Partners Ltd increased their investments, reflecting broader market confidence. Separately, Social Capital's Chamath Palihapitiya endorsed CEO Satya Nadella's view of the risks associated with closed AI models, reinforcing Microsoft's strategic positioning in the AI landscape.