Lates News

Bank of America Securities released a research report stating that Microsoft's strong third quarter financial report and outlook are mainly attributed to its cloud computing service Azure. Azure's performance during the quarter stood out, with a growth of 35% according to fixed exchange rates, exceeding the median expected growth of 31.5%. While benefiting from deliveries of graphic processing units (GPU) and central processing units (CPU) during the quarter, the stable execution of core cloud migration transactions also contributed significantly. The growth of Azure driven by OpenAI, by 16 percentage points, should help alleviate concerns about slightly tense cooperation relationships. Bank of America Securities stated that with accelerating growth, capital expenditures reaching their peak, and the scale of efficiency driven by artificial intelligence (AI), they predict that Microsoft's free cash flow growth will accelerate to near 20% levels by the 2027 fiscal year (potentially reaching 20% in the initial stages under optimistic circumstances). The bank has raised Microsoft's target price from $480 to $515, reiterating a "buy" rating.