Then the company reported fourth-quarter results on July 29, and the stock jumped more than 27%. Azure crossed $100 billion. Copilot showed real adoption numbers.
Two weeks later, JPMorgan is following that shift with a price target that says Microsoft has a long way left to run. Analyst Samik Chatterjee raised his December 2027 target to $625 from $550 on Aug. 13 while keeping his Overweight rating, according to Seeking Alpha. That implies roughly 30% upside from Microsoft's trading price of approximately $492 at the time of the note.
Chatterjee spelled out his view directly in the note. "We have a favorable view on the growth outlook for the company, wherein we envision an acceleration in the growth of both Azure and M365 Commercial Cloud with AI infrastructure buildout being the key underlying driver for acceleration in both businesses," he wrote, according to Yahoo Finance. Chatterjee sees Microsoft benefiting twice from AI spending.
Azure sells computing capacity to enterprises and AI companies. Microsoft's own products, including Copilot, act as internal customers for that same infrastructure. That creates a way to monetize expensive AI capacity through higher-margin software sold to existing enterprise customers.
Morgan Stanley resets Microsoft stock forecast ahead of earnings Bank of America doubles down on Microsoft stock ahead of earnings Citi revamps Microsoft stock price target for the rest of 2026 The note arrives after Microsoft stock rallied more than 27% following the July 29 earnings report. Azure grew 43% in constant currency. Intelligent Cloud revenue hit $39.3 billion, up 32%.
At $625, Chatterjee's December 2027 target still sits below Wells Fargo's $700 Street-high set the previous day, but above the 34-analyst average of $564.49. Chatterjee put a specific number on Copilot. He said it could ultimately add between $24 billion and $41 billion in revenue.
Extract — continue reading at the source.
