Citizens JMP Sets $550 Price Target, Nvidia Superchip Lift Drives 2.4% Microsoft Gain
MSFT•Citizens JMP initiated coverage of Microsoft with a Market Outperform rating and $550 price target, forecasting fiscal 2026 revenue of $329.5 billion, 17% growth and 47% operating margins, and estimating Microsoft’s AI-driven total addressable market will expand to $5.1 trillion by 2030. Nvidia’s N1X superchip collaboration lifted shares 2.4% and doubled weekly call volumes, reflecting heightened bullish sentiment.
1. Citizens JMP Initiates Coverage
Citizens JMP Securities commenced coverage of Microsoft with a Market Outperform rating and set a $550 price target, citing its robust enterprise AI positioning. The firm projects fiscal 2026 revenue of $329.5 billion, 17% annual growth and operating margins expanding to 47%, and estimates an AI-driven total addressable market growing to $5.1 trillion by 2030.
2. Nvidia Superchip Collaboration
Microsoft partnered with Nvidia on the N1X superchip, also known as the RTX Spark, integrating Microsoft’s cloud expertise into the design. This joint development underscores Microsoft’s strategic AI infrastructure push and drove a 2.4% share increase following the announcement.
3. Options Volume Surge
Options traders reacted to the Nvidia announcement and Microsoft’s AI outlook by executing 778,000 contracts in a single session—double the average intraday rate. Weekly 6/1 465- and 470-strike calls saw the most activity, indicating significant bullish sentiment in derivatives markets.
4. Walmart AI Usage Cap Prompts Offering Pullback
Walmart capped employee access to its in-house Code Puppy AI tool, allocating a fixed number of tokens per user to control costs. Concurrently, Microsoft has scaled back some enterprise AI offerings, reflecting broader concerns over infrastructure spend and AI monetization models.
