BofA Securities Defending on Microsoft (MSFT): 'Remains a rare AI winner in both apps & infrastructure'
BofA Securities analyst Brad Sills reiterated a Buy rating and $510.00 price target on Microsoft (NASDAQ: MSFT)
The analyst comments "Remains a rare AI winner in both apps & infrastructure. In summary, GPU/CPU shipment delays that had impacted H1 appear to be stabilizing. With solid, sustained demand for core cloud migration and AI workloads and improved execution, we look for a more consistent beat and raise pattern as we move though the year. We revise estimates post guidance and reiterate our Buy rating/top pick. Our PO of $510 is based on 38x CY26E FCF (versus 35x prior) for potential acceleration for ramping AI cycle. We continue to believe that Microsoft remains uniquely positioned to monetize the vast new AI opportunity across applications and infrastructure at scale."
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Shares of Microsoft closed at $442.33 yesterday.