Microsoft Gets $675 Target as Broadcom Secures AI Chip Supply Through 2028
Jefferies analyst Brent Thill reiterated a Buy rating on Microsoft with a $675 price target, citing Azure's integration with Microsoft 365, 450 million+ paid users and AI service margins outpacing cloud. Broadcom secured HBM and advanced-node capacity through 2028, ensuring Microsoft’s access to custom AI chips.
1. Jefferies Maintains Bullish Rating
Brent Thill of Jefferies upheld a Buy rating on Microsoft with a $675 price target, highlighting integration of Azure with Microsoft 365 and a 450 million paid user base as catalysts for expanding AI service margins and profitability.
2. Broadcom Locks AI Chip Supply Through 2028
Broadcom secured high-bandwidth memory and advanced-node manufacturing capacity at TSMC through 2028, ensuring Microsoft’s access to custom AI application-specific integrated circuits for its AI workloads and cloud services.
3. Quantum AI Risk Market Expansion
The quantum AI high-frequency trading risk market is projected to grow from $3.18 billion in 2025 to $12.05 billion by 2030 at a 30.5% CAGR, presenting potential growth opportunities for Microsoft’s Azure Quantum and AI analytics offerings.