“If You’re a Microsoft Shareholder Right Now… Get Ready! $MSFT (Massive Upside?)”
MSFT is stronger than ever — Azure up 40%+ with unmet demand, Copilot at 30M seats — but it must now turn huge AI capex into software-like profits. Expected 10-year returns average ~12.9% (4% low, 21.5% high) at $533, and a 15% required return implies an average buy price of $450.
Microsoft's stock has risen dramatically, exceeding 30% in just two and a half months. The pleasant surprise here is that this rise was not a result of media hype, but rather because Microsoft's huge investment in artificial intelligence is already paying off.
Its cloud computing business has exceeded $100 billion annually, and demand is so strong that the company is unable to meet this growing demand. With the earnings announcement date approaching, let's delve into the details before the announcement.