Microsoft Azure growth seen accelerating to 45%
Bank of America reiterated Buy on Microsoft and raised its target to $600 from $500 after 4Q26 results showed Azure growth accelerating to 43% and guided to 45% in 1Q27.
Bank of America analysts are even more bullish on Microsoft (NASDAQ: MSFT ) after the company’s latest results showed accelerating Azure growth tied to its AI strategy.
The firm reiterated a Buy rating and raised its price target to $600 per share from $500. “Microsoft’s 4Q26 results provided further validation of its AI strategy, with Azure growth accelerating from 39% in 3Q26 to 43% 4Q26 and guidance of 45% in 1Q27,” BofA analysts wrote, per CNBC.
Nvidia’s AI Financing Strategy That momentum in AI is echoed by Nvidia Corp (NASDAQ: NVDA ), which is actively financing AI infrastructure.
Nvidia disclosed during its earnings call that it extended payment terms for some investment-grade customers to 60 days, a move aimed at removing financial bottlenecks in AI deployment.
The company has invested nearly $50 billion in frontier AI labs and partnered with major financial firms to raise over $500 billion in third-party infrastructure capital.
The strategy supports AI data centers through revenue-sharing arrangements, providing minimum revenue guarantees for neocloud operators.
Nvidia’s initiatives demonstrate its commitment to sustaining AI’s momentum.
Bill Ackman’s Microsoft Bet Microsoft’s AI-driven growth aligns with Bill Ackman ‘s investment strategy.
Ackman had already made Microsoft one of his largest disclosed investments, with Pershing Square Inc. (NYSE: PS ) Capital Management’s first-quarter 2026 Form 13F showing Microsoft as its fourth-largest holding.
Ackman’s early conviction in Microsoft is gaining technical confirmation as the stock continues to rally.
Technical Analysis Microsoft’s RSI(14) stands at 64.74, indicating a neutral signal, with the stock trading 15.29% above its 50-day SMA of $435.91 and 16.57% above its 200-day SMA of $431.13.
The 50-day SMA is currently above the 200-day SMA, forming a golden cross and suggesting a continuation of the positive trend.
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