AI Might Just Make Microsoft The Top Dog For Years With $276 Billion Revenue Potential

Group 1 - Microsoft Corporation has received an upgrade to Outperform from Oppenheimer analyst Brian Schwartz, with a target price forecast of $600, driven by strong Azure growth and innovative AI solutions like Copilot [1][3] - The analyst believes Microsoft is well-positioned to capitalize on the emerging agentic AI landscape, with a scenario-based outlook for Copilot and Azure-deployed partner AI revenue through fiscal year 2030 [2][4] - Microsoft's strong Azure growth is expected to sustain investor interest in its AI business, which is not fully priced, indicating potential for upside as AI revenue scales [3][4] Group 2 - Under a bull-case scenario for 2026, Microsoft's AI-related revenue could reach $45 billion, accounting for 30% of Azure's projected $150 billion total, with an EPS of $17.71 and a stock price forecast of $625, implying a 26% upside [5] - By fiscal year 2027, Microsoft's AI revenue is estimated to reach $67 billion, making up 39% of Azure's total, and could scale to $276 billion by fiscal year 2030, representing 74% of Azure's business [6] - The analyst suggests that the consensus may be overly cautious regarding Microsoft's AI upside, particularly considering the modest early impact of Copilot [6]