Wolfe Research initiated coverage on Microsoft with an Outperform rating, citing the company's leadership in cloud computing and rapid expansion in artificial intelligence capabilities as primary drivers for a bullish outlook.

Under the new agreement, Microsoft will deploy over 100 AI tools across Stellantis’s 15 car brands, targeting improvements in customer support, predictive maintenance, and cybersecurity through Azure and custom machine learning solutions.

Microsoft plans to offer Anthropic’s Claude Opus 4.7 model on its platform, aligning with a broader shift toward safety-first AI applications, while analysts project a consensus price target suggesting a 41.6% upside.