1358 ET - Microsoft deserves credit for engineering efficiency gains that allowed it to increase its cloud computing capacity without more incremental costs in F1Q, StoneX analyst Yi Fu Lee says in a note. But the company is also experiencing delays in third-party capacity deliveries, he says, meaning the cloud business is not fully de-risked. "Engineering can only bridge a physical capacity gap for so long," Lee says. "Microsoft has demonstrated that engineering can unlock underutilized CPU and GPU capacity, but sustaining near-50% Azure growth will eventually require delayed physical infrastructure to arrive and enter production." Microsoft is off 1% at $525.68.
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