Melius Downgrades Microsoft (MSFT) to Hold, Flags AI Capex and Cash Flow Risks

Microsoft Corporation (NASDAQ:MSFT) is one of the 10 AI Stocks Analysts Are Watching. On February 9, Melius analyst Ben Reitzes downgraded the stock from Buy to Hold with a $430 price target. Investors have been growing increasingly wary about the potential disruption software stocks face from AI. Particularly for MSFT, analyst sees structural AI risks and limited near-term upside at current valuation. Melius highlighted that Microsoft’s 365 business is facing threats from AI, implying a need to increas ...