Microsoft Stock Rises After Evercore Hikes Price Target on AI Growth
Yahoo Finance ·
Microsoft Stock Rises After Evercore Hikes Price Target on AI Growth Nauman Khan Wed, July 15, 2026 at 4:04 PM EDT 1 min read MSFT EVR This article first appeared on GuruFocus . Microsoft ( NASDAQ:MSFT ) shares rose about 2% on Wednesday after Evercore ISI raised its price target on the software maker to $525 from $510 and reiterated its Outperform rating, citing expectations that artificial intelligence investments will support faster growth over the next several years. Evercore said it expects Microsoft to deliver double-digit revenue and operating income growth in fiscal 2027, supported by accelerating demand for Azure cloud services and broader monetization of its Copilot AI offerings. The brokerage also said investor sentiment remains cautious despite what it views as a favorable long-term outlook. Warning! GuruFocus has detected 2 Warning Sign with MSFT. Is MSFT fairly valued? Test your thesis with our free DCF calculator. The firm projected Microsoft's fiscal 2027 cash capital expenditures at about $210 billion, above the broader Wall Street estimate of roughly $180 billion. Evercore said it expects the company to continue investing aggressively in AI infrastructure, while capital spending growth could begin to normalize during 2027. Evercore added that Azure growth in the second half of 2026, improving Copilot adoption, and easing concerns over capital expenditure trends could provide additional catalysts for Microsoft shares. The brokerage said those factors may help improve investor sentiment as the company's AI strategy continues to develop.
DYAX Investor Sentiment
Bullish (Long) 59% · Bearish (Short) 41%
409 participants
Related News
- Frequency Electronics targets at least $150M revenue and 50% gross margin by fiscal 2029, backed by $111M funded backlog
- J.B. Hunt outlines 1,000 to 1,200 new gross truck sales target as intermodal posts 578,000-load record
- GPU.ai Named Official Title Sponsor of AGI Summit SF 2026
- Qualcomm Might Be a Hot AI Stock Next Year
- Why Aehr Test Systems Stock Surged Today
- TSMC's second-quarter profit seen hitting record on AI boom