Microsoft On Path To $5 Trillion Market Cap: Analyst Says 'AI Revolution Hits Next Gear'

Core Insights - Microsoft Corporation is experiencing growth in AI and cloud services, with a focus on Azure's performance in the first quarter [1][2] - Analysts express optimism about Microsoft's future, particularly in AI and cloud segments, despite some short-term stock pressure [5][6] Financial Performance - Microsoft's commercial remaining performance obligations increased by 51% year-over-year to $392 billion [3] - Azure reported a growth rate of 39% year-over-year in constant currency, one of the highest among hyperscalers [5] Strategic Outlook - Microsoft aims to increase its AI capacity by 80% year-over-year and plans to double its data center footprint over the next two years [3] - Analysts believe FY26 will be a pivotal year for AI growth at Microsoft [4] Analyst Ratings - Wedbush maintains an Outperform rating with a price target of $625 [7] - Goldman Sachs reiterates a Buy rating with a price target of $630 [7] Stock Performance - Microsoft shares are down 2.2% to $529.76, with a year-to-date increase of 26.6% [8]