智通财经网·2025-12-18 07:04Core Viewpoint - Morgan Stanley analyst Keith Weiss believes that Microsoft's Azure division has significant upside potential following a meeting with Microsoft executives, particularly due to a recent $250 billion deal with OpenAI [1] Group 1: Azure Growth Potential - Weiss has raised expectations for Azure, estimating that the gross margin for Azure AI (excluding revenue sharing with OpenAI) may have reached around 20% [1] - He projects that the gross margin for Azure AI could reach 30% or higher by fiscal year 2029, indicating substantial growth potential [1] - Weiss anticipates that Azure AI's profit margins could exceed 40%, suggesting significant growth opportunities in the coming years [1] Group 2: Demand Trends and Financial Projections - Conversations with Microsoft management have bolstered confidence in demand trends, which are expected to support accelerated revenue growth and expanded operating margins in the first fiscal quarter [1] - Demand signals in terms of bookings, remaining performance obligations (RPO), and product usage are outpacing previous expectations [1] - Despite Microsoft's current stock price being 23 times the projected GAAP earnings per share of approximately $20.65 for fiscal year 2027, the strong demand and potential for margin improvement are seen as undervalued [1] Group 3: OpenAI Deal Impact - The growth forecast for Azure is considered to be far less than the potential contribution from the OpenAI deal, which could provide an additional growth point if the remaining performance obligations can be fully recognized as revenue [1]