RBC Capital on Microsoft (MSFT): 'we are a little surprised to see another amended agreement'

RBC Capital analyst Rishi Jaluria reiterated an Outperform rating and $640.00 price target on Microsoft (NASDAQ: MSFT).

The analyst comments "Stepping back , we are a little surprised to see another amended agreement, six months after the prior one (see here ), but acknowledge the dynamics in AI are shifting very quickly. We are also unclear on a few components of the deal, including research rights and API exclusivity, and will look for more color on Wednesday's earnings call. Ultimately, we believe the updated agreement could be positive for both Microsoft, as the company becomes less dependent on OpenAI and leverages a multi-model approach, and for OpenAI, opening its ability to expand capacity with other providers and providing greater incentive for those partners to work with OpenAI."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $424.62 yesterday.

You May Also Be Interested In

• CFRA Starts SpaceX (SPCX) at Sell, 'Our primary concern is that SpaceX’s long-term strategy remains heavily dependent on Starship'
• BofA flags this company's data center value creation opportunity
• OpenAI to acquire cloud execution company Ona