Latest news with #MSFT
Yahoo
2 hours ago
- Business
- Yahoo
Bernstein SocGen Lifts MSFT Target to $540 on AI-Driven Cloud Outlook
Bernstein SocGen has raised its price target on Microsoft (NASDAQ: MSFT) to $540 from $520, and kept an Outperform rating for the stock a couple of weeks ago. Shares are trading at $477, near their 52-week high, with a market cap of $3.55 trillion. The firm sees longer-term upside tied to Microsoft's partnership with OpenAI. If OpenAI's roadmap unfolds as projected, Azure stands to capture a sizable share of the resulting demand, particularly in cloud infrastructure. Bernstein believes this could materially boost Microsoft's top line by 2029–2030. Image by Tawanda Razika from Pixabay To account for this, the analysts raised their revenue forecast for FY27 and increased earnings estimates for FY26 and FY27. They've also bumped Microsoft's valuation multiple from 28.5x to 29.5x. Most of the expected gains fall outside the near-term forecast window, but the analysts argue the long-range potential is strong enough to justify the upward adjustment. Azure's position in the AI supply chain remains central to that view. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Business Insider
9 hours ago
- Business
- Business Insider
AMD Will Develop ‘Gaming Optimized Chips' for Microsoft's Next Xbox
Advanced Micro Devices (AMD) stock rallied on Friday after the semiconductor company revealed it's working with Microsoft (MSFT) on the development of the next Xbox. In this announcement, AMD CEO Lisa Su said the company will create 'gaming optimized chips' for use in the new Xbox. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to Su, this new partnership goes beyond AMD's previous work with Microsoft. That includes, 'Combining the power of Ryzen and Radeon for consoles, handhelds, PCs, and the cloud.' The AMD CEO also noted that these chips are being made with backward compatibility in mind, allowing gamers to enjoy titles from previous Xbox generations. News of its partnership with Microsoft was a boon to AMD stock on Friday. The company's shares got a 1.43% boost, extending its year-to-date gain of 6.55%. However, the stock is still down 21.36% over the past 12 months. Today's rally also saw 32.6 million shares change hands, compared to a three-month daily average of 42.93 million units. Microsoft's Surprise Reveal Investors have also noted a surprising reveal in the Microsoft and AMD Xbox announcement. During the announcement, Xbox President Sarah Bond said the game company seeks to create an Xbox experience that isn't tied to a single device or store. This statement fueled speculation that Microsoft might allow more stores on Xbox. There have already been rumors that Steam and the Epic Games Store could be added to the console. If this happens, it would open the way for PC gamers to play their games on Microsoft's game console. When this bit of information was pointed out by a user on X, formerly Twitter, the official Xbox account replied with a wide-eyes-looking-to-the-side emoji. While that isn't a confirmation, it does add to the evidence of other storefronts coming to Xbox devices. AMD and MSFT: A Match Made in Heaven? Investors might see today's announcement as a reason to buy stakes in AMD and Microsoft. Wall Street would agree with that sentiment. The analysts' consensus estimate for AMD is Moderate Buy, while Microsoft sports a consensus Strong Buy rating. A $129.93 price target offers a potential 1.35% upside for AMD, while a $516.14 price target for MSFT suggests a possible 7.65% upside.
Yahoo
2 days ago
- Business
- Yahoo
Microsoft (MSFT) Reportedly Plans Thousands of Job Cuts in Sales Teams
June 19 - Microsoft (NASDAQ:MSFT) is preparing to eliminate thousands of jobs in its sales division as it approaches the end of its fiscal year, Bloomberg reported on Wednesday, citing sources familiar with the matter. Warning! GuruFocus has detected 6 Warning Sign with MSFT. The reductions are expected to be disclosed in early July, shortly after the company closes its fiscal year at the end of June, according to the report. The layoffs will reportedly affect roles across sales functions, especially those serving small and medium-sized business clients. Back in April, Microsoft informed some teams it would begin shifting segments of its SMB software sales to external vendors, signaling broader organizational changes. In May, reports surfaced that Microsoft aimed to cut around 6,000 jobs, or nearly 3% of its global workforce, as part of broader restructuring. A company spokesperson said the changes were intended to help Microsoft adapt to a dynamic marketplace. Tech sector layoffs have slowed in 2025, but Microsoft and Intel (NASDAQ:INTC) remain among the biggest job cutters so far. Data from shows that 141 tech companies have cut nearly 62,832 jobs year to date. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Insider
2 days ago
- Business
- Business Insider
Microsoft's Exit from Talks Threatens OpenAI's For-Profit Transition
Tech giant Microsoft (MSFT) is considering withdrawing from heated negotiations with artificial intelligence (AI) startup OpenAI. The two are engaged in high-stakes talks regarding the size of Microsoft's future stake in the ChatGPT maker, should it turn into a public-benefit entity. CEO Sam Altman believes that a for-profit corporation would enable the company to raise funds more easily and even pursue an IPO (Initial Public Listing) in the future. Confident Investing Starts Here: Notably, OpenAI needs to transform into a for-profit structure to access the funds from its most recent funding round, or investors could walk away. In the worst-case scenario, some may convert their equity funding into debt. For instance, one of its largest backers, Japan's SoftBank (SFTBY), might reduce its funding by $10 billion, from the initially planned $30 billion. Microsoft must approve the conversion by the end of this year. Multibillion-Dollar Partnership at Risk Microsoft has invested over $13 billion in OpenAI since its initial funding in 2019. The companies are negotiating the size of MSFT's equity stake, which could range from 20% to 49% in the restructured entity. However, the two seem to have reached an impasse regarding their future relationship. A Financial Times report stated that if the parties fail to reach an agreement, Microsoft could withdraw and continue to rely on its existing contract, which grants it access to OpenAI's technology until 2030. Notably, the tech giant has exclusive rights to sell access to OpenAI's AI models and tools through Azure Cloud and receives a 20% share of OpenAI's revenues. Microsoft is unwilling to give up either benefit, as this exclusivity gives it an edge over rivals Alphabet (GOOGL) and Meta Platforms (META) in the AI race. Meanwhile, this fallout has led OpenAI to consider legal action, threatening to take Microsoft to court and accusing it of anticompetitive behavior. Moreover, OpenAI is complaining that Microsoft is unable to deliver the enhanced computing power required to run and train its advanced ChatGPT models. The AI firm boasts 500 million weekly active users worldwide. Their partnership has indeed been a productive one, delivering advanced AI tools to the masses and widely regarded as one of the most important in the technology sector. Both parties are said to be in daily discussions on the subject, and their recent joint statement reads, 'Talks are ongoing and we are optimistic we will continue to build together for years to come.' Furthermore, once this hurdle is cleared, OpenAI must receive approval from attorneys general in Delaware and California to convert to a for-profit structure. Additionally, OpenAI must contend with billionaire Elon Musk 's lawsuit, which seeks to halt the transformation. Is Microsoft a Good Stock to Buy? Analysts remain highly optimistic about Microsoft's long-term stock trajectory. On TipRanks, MSFT stock has a Strong Buy consensus rating based on 31 Buys and five Hold ratings. The average Microsoft price target of $518.77 implies 8% upside potential from current levels. Year-to-date, MSFT stock has gained 14.4%.
Yahoo
2 days ago
- Business
- Yahoo
Microsoft to Axe Thousands of Sales Roles at Fiscal-Year End
Microsoft (NASDAQ:MSFT) is set to cut several thousand sales roles once its fiscal year closes at the end of June, part of ongoing efforts to streamline its go-to-market operations. Warning! GuruFocus has detected 6 Warning Sign with MSFT. Bloomberg reports the cutsfocused mainly on small- and mid-market sales teamswill be announced next month, following April's decision to outsource some SMB software sales to third-party partners. This move comes on top of Microsoft's earlier plan to trim headcount by roughly 3% (about 6,000 jobs) across the company. While the broader tech layoff wave has eased in 2025, Microsoft and Intel still lead the pack: so far, 141 tech firms have shed 62,832 roles, per Scaling back sales headcount signals a shift toward partner-led distribution for lower-tier accounts, letting Microsoft redeploy resources toward high-growth areas like cloud and AI. For the salesforce, it underscores intensifying pressure to demonstrate ROI amid softer enterprise spending. Investors have shrugged off previous cutsMSFT shares are up 14% year to datebut the real test will be whether leaner sales teams can sustain growth targets in a competitive market. Analyst conviction in Microsoft has pulled back slightly this summer: the total number of rated firms fell from 63 in May to 57 now, with Buy calls slipping from 22 to 19 and Hold recommendations dropping from seven to four. Outperform ratings remain steady at 34, while no one is left on Sell. Overall, it looks like analysts are dialing back their urgency but still see MSFT as a solid outperformer. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
