Jefferies Maintains Buy on Microsoft (MSFT) as Copilot Adoption Accelerates and AI Agents Emerge

Core Viewpoint - Microsoft Corporation is recognized as a significant player in the AI sector, with a bullish outlook supported by Jefferies maintaining a Buy rating and a price target of $675.00, driven by the acceleration of Copilot rollout, early AI agent adoption, and strong cloud positioning [1]. Group 1: Copilot and AI Adoption - The adoption of Copilot, Microsoft's AI-powered chat assistant, is accelerating as the product matures, transitioning from gradual deployments to enterprise-wide rollouts across its customer base [2][4]. - AI agents are beginning to emerge in the market, but they are still in the early stages of development, described as being in the "first half of 1st inning" in terms of market maturity [3][4]. Group 2: Market Position and Growth Drivers - AI is contributing to growth in non-AI workloads for Microsoft, although the company faces capacity constraints [4]. - There is strong demand for Microsoft's core cloud services, with the company capturing market share from migrations due to its comprehensive end-to-end platform [4].