Morgan Stanley raised the firm’s price target on Microsoft (MSFT) to $548 from $506 and keeps an Overweight rating on the shares. Azure growth of 34% in constant currency in Q1 came in 1% point ahead of expectations, with GenAI contribution up to 12% points, as demand continues to outstrip supply, the analyst tells investors. Azure growth is expected to slow 31%-32% in the forward quarter, before accelerating in the second half of FY25, while management expects total GenAI revenue to exceed a $10B run-rate in Q2 of FY25, the analyst added.
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