Veteran analyst issues eye-popping Microsoft stock price target originally appeared on TheStreet.
Microsoft’s (MSFT) has been a dark horse this year, as its cloud and AI engines continue to fire.
Be it Azure’s dominance, Copilot’s spread, or its massive data center bets, Microsoft is marching forward with considerable aplomb.
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Despite the uncertainty, it has kept pushing the pace, posting strong guidance, winning fresh analyst upgrades, and firmly holding its spot at the top of the tech hierarchy.
All things point to more upside for Microsoft stock, and that’s exactly why a fresh Wall Street upgrade just dropped jaws, setting a price target that’s adding another massive chunk to its already giant market cap.
Microsoft’s Azure cloud has been doing a lot of heavy lifting, and the numbers prove it.
For context, in the third quarter of fiscal 2025, Microsoft’s Intelligent Cloud sales hit $26.8 billion, up 21% year-over-year.
Strip out forex-related swings, and that growth jumps to 22%.
At the core of it all is Microsoft’s dependable Azure and its other cloud services, which posted an incredible 35% quarterly growth in constant currency.
Nearly 50% of that jump came directly from AI workloads.
Add it all up, and Microsoft’s total cloud sales have soared to $42.4 billion, marking a 20% gain.
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Moreover, robust infrastructure-as-a-service (IaaS) demand is pushing the company’s capacity to the limit in key regions, indicative of Azure’s infrastructure muscle.
Currently, Azure commands roughly 23% to 25% of the global cloud market share. That’s closing in on Amazon Web Services’ 29%, while Google Cloud trails behind at around 12%.
Microsoft’s commercial bookings are also through the roof, up 67% year-over-year to roughly $300 billion in locked-in contracts offering some serious revenue visibility.
Management’s outlook is just as strong.
For Q4, it’s targeting Intelligent Cloud sales of $28.75 billion to $29.05 billion, with Azure growth pinned at roughly 34% to 35%. Demand hasn’t shown signs of much easing, even as supply constraints bite.
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Profitability is surging, too. Last quarter’s earnings per share came in at $3.46, blowing past Wall Street’s expectations and reflecting healthier margins from Azure’s scale.
