Microsoft (MSFT) Stock Seen as Long-Term AI Winner, Says Evercore

Microsoft Corporation (NASDAQ:MSFT) is one of the Hot AI Stocks to Keep on Your Radar. One of the biggest analyst calls on Tuesday, September 9, was for Microsoft.

Evercore ISI reiterated the stock as “Outperform” with a  $625 price target, stating that investors should buy the dip.

“Regardless of the exact reason for the relative weakness over the last month, our view is that you own MSFT for the long-term compounding nature of the business, and on that front, we remain confident that the company is well positioned to monetize AI at both the infrastructure and agentic layer when looking out 3-5 years.”

Discussions with Microsoft’s investor relations team and investors have revealed no “material fundamental concerns on the horizon” coupled with Azure growth trends reinforced by ChatGPT inferencing and solid enterprise demand.

“Fundamental outlook remains strong. In speaking to investors on the road over the last few weeks and after catching up with IR, we don’t believe there are any material fundamental concerns on the horizon. Clearly, Azure expectations are more elevated after posting 39% y/y growth in F4Q (buy-side bogey still seems to have a ‘high-3 handle’), but the trends underpinning that growth – namely ChatGPT inferencing and solid enterprise demand – seem stable. Clearly, F1Q is a bit trickier on the enterprise bookings front, but we believe seeing Azure deliver mid-30% growth for FY26 appears to be a reasonable expectation. Further, with MSFT already guiding to flat op. margins for FY26, we anticipate that there is room for our/Street estimates to push higher. With shares at 31x NTM EPS vs. the S&P 500 at 22x, MSFT’s premium is below its 5-year average and we don’t see a lot of cracks in the fundamental bull narrative.”

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

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