Azure’s Inflection Point: Can Microsoft (MSFT) Balance AI Growth With Capex Risk?
Source: Insider Monkey ·
Microsoft Corporation (NASDAQ:MSFT) has lagged the broader market amid growing concerns about ballooning capital expenditure. The stock is up roughly 5% year to date, compared with a gain of about 21% for the tech-heavy Nasdaq 100, which has bounced to record levels. Investors have also been weighing Microsoft’s capital allocation strategy, particularly after its latest […]
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Microsoft Corporation (NASDAQ: MSFT ) has lagged the broader market amid growing concerns about ballooning capital expenditure. The stock is up roughly 5% year to date, compared with a gain of about 21% for the tech-heavy Nasdaq 100, which has bounced to record levels. Investors have also been weighing Microsoft's capital allocation strategy, particularly after its latest dividend increase. For a deeper look at how the company's AI spending could affect its dividend investment thesis, see: Microsoft (MSFT) Raises Its Dividend 8%. Does AI Spending Change the Investment Case? However, the sentiment surrounding the stock may be starting to improve. In a September 23 research note, Stifel reiterated its view that robust growth in artificial intelligence and other strategic initiatives could strengthen the company's growth outlook. The firm upgraded the stock to Buy from Hold and raised its price target to $575 from $530. Stifel believes Microsoft can sustain revenue growth in the…