StoneX Lifts Microsoft Price Target from $450 to $600, Bullish on AI Chips, Agents, and Azure Progress

StoneX has sharply raised its price target on Microsoft (NASDAQ: MSFT) from $450 to $600, an increase of 33.3%, while maintaining a "Buy" rating.

The firm believes that Microsoft is shifting from large-scale construction of AI infrastructure toward improving commercialization efficiency through in-house chips, artificial intelligence models, and agent products.

Microsoft is scheduled to report its first-quarter results for fiscal 2027 after the U.S. market close on October 28, and the performance of its Azure cloud business will be the key factor influencing the stock's post-earnings movement.

Shifting from expanding AI computing scale to improving output per unit of investment

StoneX noted that since the previous quarter, Microsoft has made progress across multiple parts of its artificial intelligence technology system, including advancing its Maia in-house AI chips, developing its own AI models, and redesigning Copilot so that it can carry out persistent agent tasks.

At the same time, Microsoft is extending Azure's hybrid AI capabilities to Windows computers and other endpoint devices, and is adjusting its internal business organization around AI agents, infrastructure, and consumer devices.

StoneX believes that fiscal 2026 has already demonstrated Microsoft's ability to build AI infrastructure on a large scale, while the focus of fiscal 2027 will be increasing the value of AI services, revenue, and profit generated per unit of capital and power invested.

Azure's earnings performance will determine the short-term stock reaction

Microsoft's revenue over the past 12 months reached $331.84 billion, up 18% year over year.

StoneX believes that current market expectations for Azure's growth are at a relatively reasonable level, so whether Azure can meet expectations in the upcoming earnings report will be an important indicator to watch.

Other institutions have also recently raised their price targets for Microsoft. UBS lifted its target from $525 to $675, while TD Cowen raised its target from $540 to $625, both maintaining "Buy" ratings, mainly on optimism over Azure's growth and the commercialization prospects of its AI business.