Jefferies Maintains Buy on Microsoft (MSFT) as Copilot Adoption Accelerates and AI Agents Emerge

Microsoft Corporation (NASDAQ:MSFT) is one of the Hot AI Stocks to Keep on Your Radar. On November 24, Jefferies maintained its Buy rating on the stock with a $675.00 price target. The firm maintains a bullish stance on Microsoft driven by accelerating Copilot rollout, early AI agent adoption, and cloud positioning driving continued upside.

Firm analysts note how Copilot, Microsoft’s AI-powered chat assistant, has matured and is now accelerating. Deployments are now transitioning from gradual to enterprise-wide rollouts across Microsoft’s customer base.

Meanwhile, AI agents have begun to emerge but remain in the first half of 1^st innings in terms of market maturity.

“Our key takes: Copilot adoption is accelerating, as product has matured, moving from gradual to enterprise-wide rollouts. Agents are emerging, but still early – 1st half of 1st inning. AI is driving growth in non-AI workloads, though MSFT faces capacity constraints. Strong core cloud demand continues with MSFT capturing share of migrations due to its end-to-end platform.”

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

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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