From Yahoo Finance: 2025-04-20 10:07:00

Microsoft, a leader in AI infrastructure, is strategically slowing down expansion plans due to the economic environment. Analysts note a shift towards selective investments and a decrease in AI cloud capacity expansion across the U.S. and Europe. Despite this, Microsoft remains less impacted by tariffs compared to other tech giants like Nvidia and Tesla.

In fiscal year 2024, Microsoft’s cloud segment, including Azure, contributed 43% of total revenue. The company’s focus on enterprise customers and long-term contracts provides stability. However, growth in Azure fell short of expectations in the latest quarter, impacting revenue outlook. Microsoft is set to report fiscal third-quarter earnings on April 30.

Citi analysts lowered Microsoft’s price target to $480, aligning with a broader economic slowdown view. Azure growth may slow further in the fourth quarter. Despite caution, analysts see Microsoft as a defensive asset within large-cap tech. Revenue from Intelligent Cloud accounted for 37% of total revenue in the December quarter.



Read more at Yahoo Finance: Analyst unveils surprising Microsoft stock price target after tariff slump