Microsoft (MSFT) Gets $650 Target as OpenAI Ties Boost Azure's AI Lead

Microsoft Corporation (NASDAQ:MSFT) is one of the High Flying AI Stocks This Week. On August 6, DA Davidson analyst Gil Luria reiterated a Buy rating and $650.00 price target on the stock. The rating affirmation follows OpenAI’s release of its latest model, GPT-OSS.

The firm emphasized on the significance of Microsoft’s relationship with OpenAI, which is helping Microsoft drive significant gains.

“Earlier today, OpenAI released their latest model, GPT-OSS, marking the lab’s first open-source release since GPT-2 in February 2019. In conjunction with our initial thoughts on both GPT-OSS models, we remind investors about the outsized benefit Microsoft gains in having a tight commercial relationship with OpenAI.”

Azure gains, in particular, were highlighted.

“Microsoft’s partnership with OpenAI is driving significant gains throughout the business. Particularly with Azure, Microsoft’s agreement terms with OpenAI, which grants them right-of-first-refusal on either training or inference, we believe is a notable driver of the recent outperformance by Azure over its hyperscaler peers.”

The firm also talked about material acceleration of Azure OpenAI Services in the fourth fiscal quarter of 2025. This acceleration is elevating other AI services and core hyperscaler services on Azure “both of which are growing faster than comparable product sets on either GCP or AWS.”

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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Disclosure: None.