Microsoft Stock 'Still In The Lead In The AI Revolution': Analyst Expects 'Robust' Q2 Results

Core Viewpoint - Microsoft is expected to report strong second-quarter financial results, driven by growth in Azure and AI initiatives, despite skepticism from some analysts [1][3]. Group 1: Analyst Ratings and Price Targets - Wedbush analyst Dan Ives maintains an Outperform rating on Microsoft with a price target of $625 [2]. - Ives believes that Microsoft shares have underperformed due to increased competition and concerns regarding its relationship with OpenAI [4]. Group 2: Growth Expectations - Ives anticipates robust results for Microsoft, particularly from Azure, which is projected to grow by 37% year-over-year [5]. - The analyst emphasizes that AI is crucial for Azure's growth and that the company is just beginning to tap into this potential [5]. Group 3: Future Outlook - Ives suggests that the stock has not yet priced in the upcoming wave of cloud and AI growth expected in 2025, indicating a strong competitive edge due to its large installed base [6]. - Microsoft is positioned for significant growth in 2026, making its shares a compelling buy at current levels [6].