Microsoft Price Target Lowered by Melius on AI Strategy Concerns

Melius lowered its price target on Microsoft (NASDAQ: MSFT) to $400 from $430, while maintaining a Hold rating, citing concerns around its AI strategy and partnership dynamics. The firm noted that Microsoft’s recent reorganization of its Copilot division did not appear to be a move made from a position of strength. This development followed reports that Microsoft is considering legal action against OpenAI, a key partner that accounts for approximately 45% of Azure’s backlog. OpenAI had been expected to prov ...