Microsoft drew bullish analyst PT hikes ahead of earnings: Jefferies, UBS and Citigroup cited Azure/Microsoft 365 strength and AI-driven demand; UBS noted recent gains lifted expectations but fundamentals support its target. A hurdle is elevated expectations after its recent rise.

You are now turning to Microsoft and the major cloud computing companies that did not really participate in the wave of the big tech stock sell-off that we have seen. In fact, Microsoft fell by only a third of 1% this week , while the SOX index dropped by 11%, right? Therefore, it was somewhat protected.

So, Microsoft is getting more attention on Wall Street today, with more optimistic views from several analysts. Jefferies, UBS, and Citigroup are all raising their price targets.

Jefferies raises its price target from 575 to 650. Jefferies says its quarterly results are well positioned thanks to Azure and Microsoft 365. They see acceleration in this and believe the valuation looks attractive.

For Jefferies, Microsoft and Alphabet are their favorite cloud computing companies before they release their earnings reports. UBS raises its price target for Microsoft to 675.

This represents an increase from 525. It is the highest target among the group.

UBS, it's also the biggest increase in their forecasts. They say that Microsoft's rise has already raised growth expectations , but they see the fundamentals of Azure and Microsoft 365 as strong and support their optimism about reaching that price target.

At Citigroup, they raised their price target for Microsoft to 636. This is up from 600. They say that a survey of chief information officers and an examination with distributors indicate stronger demand as companies increase their spending on artificial intelligence.

So, we know that Azure is the infrastructure opportunity here, and they clearly see Microsoft as being well-positioned to gain market share in this area. Microsoft 365 is the opportunity for a work environment here.

There is a hurdle related to expectations because, as you mentioned, Microsoft has been on an overall upward trajectory recently . Although this is outside the scope of today's or this week's movements, isn't it?

There is a slight decline, but expectations may rise as we get closer to the results announcement, Nicole.