RPT-BUZZ-US STOCKS WEEKLY: UNDAUNTED
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy MSFT?
Source: moomoo
Market Overview: The U.S. stock market has shown resilience despite economic uncertainties, with investors remaining optimistic about future growth.
Sector Performance: Technology and healthcare sectors have outperformed others, driven by strong earnings reports and positive outlooks.
Economic Indicators: Recent economic data suggests a steady recovery, with improvements in employment rates and consumer spending.
Investor Sentiment: Overall investor sentiment remains bullish, with many looking for opportunities in undervalued stocks amidst market fluctuations.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 411.380
Low
500.00
Averages
631.36
High
678.00
Current: 411.380
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft's Strong Earnings Amidst Stock Slump Suggests Potential Comeback
- Strong Earnings Report: Microsoft reported an 18% year-over-year revenue increase and a 20% rise in operating income for Q3 of fiscal 2026, indicating robust performance in the AI sector, despite a declining stock price.
- Cloud Computing Growth: Azure's revenue surged by 40% this quarter as clients utilize its computing power for AI model training, solidifying Microsoft's position as a key player in the cloud market and driving significant revenue growth.
- Booming AI Business: Microsoft's non-cloud AI segment achieved a $37 billion annual run rate with a staggering 123% year-over-year growth, showcasing the substantial returns from its AI investments, even as the stock price fails to reflect this success.
- Attractive Valuation: With an operating price-to-earnings ratio of about 21, Microsoft is trading at its lowest valuation in a decade, and given its strong business fundamentals, a stock rebound is anticipated, presenting a compelling buying opportunity for investors.
See More
Microsoft: A Blue-Chip Stock for Generations
- Financial Robustness: Microsoft reported $82.9 billion in revenue for the most recent quarter, surpassing the combined revenues of Broadcom, Lenovo, and IBM over the past four quarters, demonstrating its strong profitability and market leadership, which ensures resilience during economic fluctuations.
- Diversified Business Model: As the world's largest enterprise software provider, Microsoft's operations span operating systems, cloud platforms, hardware, and social media, creating a robust ecosystem that businesses heavily rely on for daily operations, enhancing its strategic significance.
- Stable Dividend Growth: Although Microsoft has a modest dividend yield of 0.8%, it has increased its dividend by 152% over the past decade and has raised its dividend for 21 consecutive years, showcasing its stable cash flow and commitment to shareholders, positioning it to potentially become a Dividend King.
- Cash Reserve Advantage: With $78.3 billion in cash reserves, Microsoft has a safety net that allows it to navigate economic uncertainties while actively pursuing new technologies, particularly in artificial intelligence, thereby enhancing its competitive edge in the tech industry.
See More
Microsoft May Delay 2030 Renewable Energy Commitment Amid Data Center Expansion
- Renewable Energy Commitment Uncertainty: Microsoft is considering delaying or abandoning its 2030 goal of matching 100% of its hourly electricity use with renewable energy purchases, influenced by the costs and energy demands of data center expansion, which could undermine its leadership in climate commitments.
- Data Center Expansion Impact: With AI demand surging, Microsoft is adding nearly 1GW of data center capacity every three months, leading to a 23% increase in carbon emissions in its latest report, indicating a challenging balance between growth and environmental responsibility.
- Shifting Industry Trends: As major companies like Amazon and Meta seek sufficient energy to meet AI demands, the appeal of natural gas is rising, with a former Netflix net zero director noting that clean energy targets are being overlooked in the rush to build data centers, making gas the fuel of choice.
- Increased Financial Pressure: Microsoft expects to spend $190 billion this year, with rising AI costs tightening budgets across divisions, particularly for carbon footprint reduction projects, leading to greater scrutiny of financial commitments to clean energy initiatives.
See More
Microsoft May Delay Renewable Energy Goals Amid AI Infrastructure Push
- Goal Adjustment Discussions: Microsoft is considering delaying or abandoning its 2030 target of matching 100% of its electricity use with renewable energy purchases, as the high energy consumption and costs associated with data centers challenge the feasibility of this climate commitment.
- Industry Impact: This potential decision could affect Microsoft's reputation regarding climate commitments, especially when compared to rivals like Amazon and Alphabet, whose targets were once viewed as the most ambitious in the industry.
- Infrastructure Investment: Microsoft is investing hundreds of billions of dollars to build artificial intelligence infrastructure to support its Copilot assistant and Azure cloud services, which has intensified the demand for electricity, particularly for nuclear and natural gas.
- Energy Deal Dynamics: The power deal Microsoft struck with Constellation Energy aims to resurrect the Three Mile Island nuclear plant in Pennsylvania, reflecting the company's diversified strategy in addressing energy demands.
See More
Apple Increases R&D Spending, Accelerates AI Strategy
- Significant R&D Increase: Apple's R&D spending reached 10.3% of revenue in Q1 2026, up from 9% a year earlier, indicating a strong commitment to artificial intelligence that is expected to drive future product innovation.
- Strong Sales Growth: In the same quarter, Apple's sales surged by 17%, marking the fastest quarterly growth since 2021, reflecting robust market demand for iPhones and Macs, which further supports the company's investment decisions in AI.
- Accelerated AI Product Development: With CEO Tim Cook preparing to step down, Apple is hastening the development of AI products, including an updated Siri and other AI wearables, demonstrating a sense of urgency and strategic shift in technology innovation.
- Insufficient Capital Expenditure: Despite the increase in R&D spending, Apple lags behind competitors in capital expenditures, spending only $4.3 billion over the past two quarters, significantly less than the hundreds of billions spent by companies like Google and Amazon, which may impact its competitiveness in AI infrastructure development.
See More
US and Iran Nearing Peace Deal Amid Market Rally
- Market Rally: Stock futures are rising and oil prices are falling as the US and Iran approach a peace deal, reflecting optimism in the market regarding reduced geopolitical risks, which could boost investor confidence.
- Tech Stock Surge: Micron's shares surged 11% after announcing the shipment of its highest-capacity solid-state drives, pushing its market cap above $700 billion for the first time, indicating the company's leadership in technological innovation and potential for increased market share.
- Disney's Strong Performance: Disney beat second-quarter revenue expectations with a 7% year-over-year increase, despite a 1% decline in domestic park visits, showcasing resilience in consumer demand and laying a foundation for future growth through strong streaming and park operations.
- New Manufacturing Partnership: Nvidia and Corning announced plans to build three new manufacturing facilities in North Carolina and Texas focused on optical technology development, which investors welcomed, highlighting market anticipation for advancements in technology collaboration.
See More
Microsoft's Strong Earnings Amidst Stock Slump Suggests Potential Comeback
- Strong Earnings Report: Microsoft reported an 18% year-over-year revenue increase and a 20% rise in operating income for Q3 of fiscal 2026, indicating robust performance in the AI sector, despite a declining stock price.
- Cloud Computing Growth: Azure's revenue surged by 40% this quarter as clients utilize its computing power for AI model training, solidifying Microsoft's position as a key player in the cloud market and driving significant revenue growth.
- Booming AI Business: Microsoft's non-cloud AI segment achieved a $37 billion annual run rate with a staggering 123% year-over-year growth, showcasing the substantial returns from its AI investments, even as the stock price fails to reflect this success.
- Attractive Valuation: With an operating price-to-earnings ratio of about 21, Microsoft is trading at its lowest valuation in a decade, and given its strong business fundamentals, a stock rebound is anticipated, presenting a compelling buying opportunity for investors.
See More
Microsoft: A Blue-Chip Stock for Generations
- Financial Robustness: Microsoft reported $82.9 billion in revenue for the most recent quarter, surpassing the combined revenues of Broadcom, Lenovo, and IBM over the past four quarters, demonstrating its strong profitability and market leadership, which ensures resilience during economic fluctuations.
- Diversified Business Model: As the world's largest enterprise software provider, Microsoft's operations span operating systems, cloud platforms, hardware, and social media, creating a robust ecosystem that businesses heavily rely on for daily operations, enhancing its strategic significance.
- Stable Dividend Growth: Although Microsoft has a modest dividend yield of 0.8%, it has increased its dividend by 152% over the past decade and has raised its dividend for 21 consecutive years, showcasing its stable cash flow and commitment to shareholders, positioning it to potentially become a Dividend King.
- Cash Reserve Advantage: With $78.3 billion in cash reserves, Microsoft has a safety net that allows it to navigate economic uncertainties while actively pursuing new technologies, particularly in artificial intelligence, thereby enhancing its competitive edge in the tech industry.
See More
Microsoft May Delay 2030 Renewable Energy Commitment Amid Data Center Expansion
- Renewable Energy Commitment Uncertainty: Microsoft is considering delaying or abandoning its 2030 goal of matching 100% of its hourly electricity use with renewable energy purchases, influenced by the costs and energy demands of data center expansion, which could undermine its leadership in climate commitments.
- Data Center Expansion Impact: With AI demand surging, Microsoft is adding nearly 1GW of data center capacity every three months, leading to a 23% increase in carbon emissions in its latest report, indicating a challenging balance between growth and environmental responsibility.
- Shifting Industry Trends: As major companies like Amazon and Meta seek sufficient energy to meet AI demands, the appeal of natural gas is rising, with a former Netflix net zero director noting that clean energy targets are being overlooked in the rush to build data centers, making gas the fuel of choice.
- Increased Financial Pressure: Microsoft expects to spend $190 billion this year, with rising AI costs tightening budgets across divisions, particularly for carbon footprint reduction projects, leading to greater scrutiny of financial commitments to clean energy initiatives.
See More
Microsoft May Delay Renewable Energy Goals Amid AI Infrastructure Push
- Goal Adjustment Discussions: Microsoft is considering delaying or abandoning its 2030 target of matching 100% of its electricity use with renewable energy purchases, as the high energy consumption and costs associated with data centers challenge the feasibility of this climate commitment.
- Industry Impact: This potential decision could affect Microsoft's reputation regarding climate commitments, especially when compared to rivals like Amazon and Alphabet, whose targets were once viewed as the most ambitious in the industry.
- Infrastructure Investment: Microsoft is investing hundreds of billions of dollars to build artificial intelligence infrastructure to support its Copilot assistant and Azure cloud services, which has intensified the demand for electricity, particularly for nuclear and natural gas.
- Energy Deal Dynamics: The power deal Microsoft struck with Constellation Energy aims to resurrect the Three Mile Island nuclear plant in Pennsylvania, reflecting the company's diversified strategy in addressing energy demands.
See More
Apple Increases R&D Spending, Accelerates AI Strategy
- Significant R&D Increase: Apple's R&D spending reached 10.3% of revenue in Q1 2026, up from 9% a year earlier, indicating a strong commitment to artificial intelligence that is expected to drive future product innovation.
- Strong Sales Growth: In the same quarter, Apple's sales surged by 17%, marking the fastest quarterly growth since 2021, reflecting robust market demand for iPhones and Macs, which further supports the company's investment decisions in AI.
- Accelerated AI Product Development: With CEO Tim Cook preparing to step down, Apple is hastening the development of AI products, including an updated Siri and other AI wearables, demonstrating a sense of urgency and strategic shift in technology innovation.
- Insufficient Capital Expenditure: Despite the increase in R&D spending, Apple lags behind competitors in capital expenditures, spending only $4.3 billion over the past two quarters, significantly less than the hundreds of billions spent by companies like Google and Amazon, which may impact its competitiveness in AI infrastructure development.
See More
US and Iran Nearing Peace Deal Amid Market Rally
- Market Rally: Stock futures are rising and oil prices are falling as the US and Iran approach a peace deal, reflecting optimism in the market regarding reduced geopolitical risks, which could boost investor confidence.
- Tech Stock Surge: Micron's shares surged 11% after announcing the shipment of its highest-capacity solid-state drives, pushing its market cap above $700 billion for the first time, indicating the company's leadership in technological innovation and potential for increased market share.
- Disney's Strong Performance: Disney beat second-quarter revenue expectations with a 7% year-over-year increase, despite a 1% decline in domestic park visits, showcasing resilience in consumer demand and laying a foundation for future growth through strong streaming and park operations.
- New Manufacturing Partnership: Nvidia and Corning announced plans to build three new manufacturing facilities in North Carolina and Texas focused on optical technology development, which investors welcomed, highlighting market anticipation for advancements in technology collaboration.
See More
