Jefferies Maintains Buy on Microsoft (MSFT) Amid Strong RPO Growth and Copilot Demand

Microsoft Corporation (NASDAQ:MSFT) is included among the 14 Best US Stocks to Buy for Long Term.

In its research note on December 4, Jefferies highlighted that Microsoft Corporation (NASDAQ:MSFT) pushed back against the report from The Information, debating that the data tells a very different story. Microsoft highlighted a 51% RPO growth and strong demand that causes capacity shortages. Jefferies added that Copilot adoption is still strong, saying The Information ” completely missed the point.” The firm maintained a Buy rating and $490 price target on MSFT.

Microsoft Corporation (NASDAQ:MSFT) is up by over 15% since the start of 2025. These strong returns exhibit the company’s growing involvement in the AI market and its role as one of the largest cloud providers. In its fiscal Q1 2026, the company’s Cloud revenue came in at $49.1 billion, which jumped 26% from the same period last year. Azure and other cloud service revenue rose by 40% driven by customers’ preference for the platform.

In its earnings report, Satya Nadella, Chairman & CEO, highlighted that the company is experiencing consistent demand for its AI platform, which is steering the company’s investments in both capital and talent. He further announced plans to increase the company’s AI capacity by over 80% this year and said that the company is on track to double its total data center footprint in the next two years.

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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Disclosure: None.