Street View: Microsoft reaps AI rewards without the usual price tag
MSFT•Analysts say AI investment is paying off
** Bernstein ("outperform," PT: $647) says MSFT is proving it is an AI winner with strong downside protection and further improvement ahead
** "Given the quality of the stock and low valuation we believe this is a stock investors should own" - Bernstein
** Josh Gilbert, lead analyst for APAC and Middle East for eToro says MSFT is a business that can comfortably keep spending on the AI buildout "without bleeding cash to do it"
** Daniela Hathorn, senior market analyst at Capital.com says, MSFT provided fresh evidence that AI investment is beginning to translate into commercial returns, helping offset concerns around another increase in capital expenditure
** "MSFT has been very efficient at bringing on supply at the right time and it has remarkable visibility of earnings going forward," says Ben Barringer, head of technology research at Quilter Cheviot
Microsoft shares jump after outlook and capex update
** Microsoft MSFT.O on Wednesday said it expects to continue generating cash in fiscal 2027, while forecasting capital expenditure below analysts' estimates after an accounting change for data center leases
** Shares jump 8.2% to $422.70 premarket
