Shares in Microsoft (MSFT) fell after a downgrade by Stifel to a “Hold” rating with a price target of $392, down from $540. Investors are cautious about AI technology’s impact on growth. Microsoft’s stock is trading around $412, down 3% in the past week and 14% YTD. Despite beating earnings estimates, concerns about AI spending led to the downgrade. Analysts expect a mean target of $599.28, but the range of estimates is wide. The key concern is Microsoft’s Azure segment growth, impacted by supply chain constraints and competition. Analysts remain positive on the stock, awaiting a slowdown in capex growth rates.

Read more at Barchart: This Analyst Has Finally Had Enough of AI CapEx at Microsoft. Should You Be Done with MSFT Stock Too?