Microsoft Price Target Raised to $680 as AI and Cloud Momentum Surge

Tigress Financial has significantly raised its price target for Microsoft (MSFT) to $680.00 while maintaining a Buy rating, citing the company's robust growth trajectory. Microsoft reported an 18% increase in Q3 revenue to $82.90 billion, fueled by massive momentum in Artificial Intelligence. This growth was further supported by a 29% surge in Microsoft Cloud revenues, leading to a 23% rise in diluted earnings per share. However, capital expenditures jumped by 49% as the company aggressively expands its AI data center infrastructure, which has impacted overall gross margins. Analysts view this heavy spending as a strategic necessity to secure long-term dominance in the cloud and AI sectors. Despite the margin pressure from high CapEx, the outlook remains bullish due to the strong monetization potential of AI integration across Microsoft's ecosystem.