Bank of America Sets $500 Microsoft Target; OpenAI Flags IPO Risk
Bank of America reinstated Microsoft at Buy with a $500 target, implying 30% upside driven by 15-17% annual revenue growth and strong AI cloud demand. OpenAI flagged reliance on Microsoft’s funding and compute power as a key IPO risk, spurring efforts to diversify partnerships over chip supply constraints.
1. Bank of America Buy Rating
Bank of America reinstated coverage of Microsoft with a Buy rating and set a $500 price target, representing about 30% upside. The firm cited accelerating AI cloud demand for Azure, robust adoption of Office and Windows, and a forecast of 15-17% annual revenue growth supported by continued data-center investments.
2. OpenAI IPO Risk Warning
OpenAI identified its dependence on Microsoft for funding and compute support as a material risk ahead of its IPO. The AI developer has raised $110 billion in capital, generated $13.1 billion in 2025 sales and serves over 900 million weekly users, and is now engaging multiple cloud providers to address chip supply constraints.