Microsoft Shares Gain 1% as Evercore Keeps $580 Target, Cites 38% Azure Growth
Microsoft shares rose over 1% as U.S.-Iran tensions eased, lifting AI and chip stocks after a pause in military action reduced energy disruption fears. Evercore kept a Buy rating and $580 target, citing 15% Q2 revenue growth and 38% Azure expansion, with cloud growth set to accelerate in H2 2026.
1. Geopolitical Relief Rally
Microsoft shares rose over 1% as U.S.-Iran tensions eased, lifting AI and chip stocks after a pause in military action reduced energy disruption fears.
2. Evercore Maintains Bullish Outlook
Evercore kept a Buy rating on Microsoft with a $580 price target, citing 15% Q2 revenue growth and 38% expansion in Azure cloud services.
3. Cloud Growth Outlook
Evercore expects Azure growth to accelerate in H2 2026 despite current capacity constraints, noting potential upside from the recent E7 bundle launch and broader AI initiatives like Copilot.