Ge Long Hui·2026-01-22 07:25Core Viewpoint - Jefferies reports that Microsoft's stock price has dropped 18% since the first fiscal quarter, despite announcing investment commitments of $250 billion in OpenAI and $30 billion in Anthropic, with a 23% compression in valuation multiples as investors shift towards semiconductor stocks [1] Group 1: Financial Performance - Microsoft is expected to significantly expand its capacity this year due to a large backlog of orders, indicating potential for upward movement [1] - The estimated price-to-earnings ratio for Microsoft's fiscal year 2027 is 23 times, which is attractive compared to Amazon and Google's ratios of 24 and 25 times respectively [1] Group 2: Competitive Positioning - Microsoft's operational visibility, remaining performance obligations (RPO) value, and AI monetization pathways are clearer compared to Amazon and Google [1] Group 3: Investment Recommendation - Jefferies maintains a "Buy" rating for Microsoft with a target price of $675 [1]