Analysts trim MSFT targets to $570 and $490 but retain bullish ratings amid rising capex concerns before fiscal Q4 results.
Citi and Mizuho reduced Microsoft’s price targets to $570 and $490, respectively, while maintaining Buy and Outperform ratings. The adjustments reflect caution over near-term capex digestion despite long-term growth confidence in AI and cloud segments.
Microsoft’s AI revenue reached a $37 billion annual run rate, up 123% year-over-year, though quarterly capex surged 84% to $31 billion. The stock has declined 20% year-to-date as investors await fiscal Q4 earnings on July 29, where capex guidance will be closely scrutinized.
Both firms cited constructive channel checks on Copilot and AI efficiency but warned of potential investor pushback on elevated spending. Mizuho’s cut was part of a broader large-cap software earnings preview.