Latest news with #Build2025
Tom's Guide
5 days ago
- Tom's Guide
Microsoft's agentic AI roadmap had a flaw that let hackers take over browsers — here's what to know and how to stay safe
Microsoft is quickly heading towards AI agentic browsing — that much is obvious with Edge's AI makeover and an open project called NLWeb that can be used to give any website AI power. But while this all sounds good on paper, it does open the door to a whole lot of security risks, and the company's agentic aspirations have already been hit by a flaw that is concerningly simple. Fortunately, it has been patched out, but it does start a bigger conversation we need to have about staying safe while agentic browsing. Let's get into it. NLWeb is envisioned as 'HTML for the Agentic Web.' Announced back at Build 2025, this is the framework for AI browsing on your behalf, but researchers Aonan Guan and Lei Wang found what is called a "path traversal vulnerability". This is a pretty standard security oversight that hackers can take advantage of by having an agentic AI visit a specially-made URL that can grant the attacker access to sensitive files like system configuration files and API keys. What can be done with this information is what can amount to stealing your agent's brain. Attackers at this point can get to the core functions of your AI agent and do a wide-ranging amount of things like look at/interact with emails on your behalf, or even get into your finances. The flaw was found and reported to Microsoft on May 28, 2025, and the company patched it out on July 1, 2025 by updating the open-source repository. It was a simple exposure that had huge problematic potential. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. 'This issue was responsibly reported and we have updated the open-source repository,' Microsoft spokesperson Ben Hope told The Verge. 'Microsoft does not use the impacted code in any of our products. Customers using the repository are automatically protected.' We've seen a significant shift towards agentic browsing over the last 12 months — spearheaded by the likes of OpenAI Operator, Opera launching the world's first on-device agentic AI browser, and Rabbit R1's LAM Playground. This serious flaw may have already been patched out by Microsoft, but it's clear that this won't be the last security issue we come across. For example, there's the Model Context Protocol (MCP), which is an open standard launched by Anthropic to allow AI assistants to interact with tools and services on your behalf. Sounds good on paper, but researchers have already identified the risks of account takeover and token theft: when a hacker gains access to personal authentication tokens and essentially gets the keys to your kingdom. So it's clear you need to be extra careful in the agentic era. Here are some key steps you can take: If your AI agent is asking to connect to a service like Gmail or Google Drive, read the permissions carefully. Don't approve full access if only read access is needed, so avoid clicking 'allow all' without thinking about it. On top of that, if you want an additional layer of security, use a separate account. That way you can see what the agentic AI will be able to do without putting your sensitive information on the line. Think of any agent as a teenager you just gave the car keys to — effective most of the time, but not averse to mistakes (my battered Vauxhall Corsa can attest to this). By that, I mean check the agent you use is from a reputable company to start with. That means don't install any browser extensions that claim to 'autonomously browse the web.' And whatever you're using, don't let them auto-fill forms, send emails or make purchases unless you explicitly tell them to. For Chrome users, head over to Google Security Checkup and get rid of any third-party services that have access to your account. This will limit any potential exposures, as much as turning off autofill or password auto-saving will too. And for an additional layer of security, use agentic web tools in incognito/private windows to limit cookie or token leakage. Follow Tom's Guide on Google News to get our up-to-date news, how-tos, and reviews in your feeds. Make sure to click the Follow button.
Business Insider
26-06-2025
- Business
- Business Insider
AI and Cloud Push Microsoft Stock (MSFT) Towards Long-Term Supremacy
U.S. tech giant Microsoft (MSFT) briefly lost its crown as the world's most valuable company but has since surged back, gaining 38.5% from its April 2025 low of $344, outperforming the S&P 500 (SPX) by ~20%. Confident Investing Starts Here: Back in March, I viewed the dip as a rare buying opportunity for a fundamentally sound business. Now, with the stock back at record highs, investors who acted are seeing strong returns. The key question now: Is there still room to run? I believe the answer is a confident yes. While the stock may remain range-bound in the near term due to macroeconomic concerns and uncertainties surrounding partnerships with OpenAI, the long-term investment case remains robust. Microsoft's diversified portfolio and continued focus on scaling Azure amid the ongoing AI boom make it a solid long-term holding. Relentless Innovation Allows MSFT to Surf the AI Wave Microsoft continues to deliver consistent year-over-year growth in revenues and earnings, underpinned by a resilient, diversified business model. All three of its business segments have posted impressive revenue growth rates over the past few years, with Azure's Intelligent Cloud division leading the charge, posting a compounded annual growth rate, or CAGR, of over 20%. The business consistently improves its quarterly revenue figures year after year, as shown by TipRanks data. Leading enterprises across various sectors are already leveraging Microsoft's AI, with notable names like Walmart (WMT) in retail and Siemens (SIE) in industrial settings integrating its models into their daily operations. Still, the broader market—particularly mid-sized and smaller companies—remains largely untapped, suggesting significant room for future growth. To meet this rising demand, Microsoft plans to invest $80 billion in AI infrastructure and data centers in FY2025, significantly scaling its capacity to support compute-intensive workloads. At the same time, Microsoft is laying the groundwork in quantum computing. The global market is projected to surge from $1.3 billion in 2024 to $93 billion by 2040, and Microsoft's development of its Majorana-1 quantum system signals a clear ambition to lead in this next wave of computing innovation. MSFT Debuts 'Open Agentic Web ' At the Build 2025 conference held in May 2025, Microsoft outlined its vision for the 'open agentic web'—an internet ecosystem powered by AI agents that can navigate and interact across web platforms on behalf of users, teams, and organizations. Key product announcements included Copilot Tuning, which enables low-code agent creation and multi-agent orchestration in Copilot Studio, and the NLWeb Initiative—a foundational open framework aimed at serving AI-powered web interaction, much like HTML did for the early internet. Together, these innovations are designed to help developers build intelligent applications that can understand, interact with, and take action across the web. Azure: Microsoft's Core Growth Engine Since its launch in 2010, Azure has evolved from a cloud platform into a key force in AI infrastructure. Its deep integration with OpenAI's models has strengthened its value proposition, enabling customers to embed AI directly into their operations. As TipRanks data shows, Azure now accounts for 43% of Microsoft's total revenue —up from 25% ten years ago—and generated $4 billion in annual recurring revenue (ARR) in FY2024. With AI adoption accelerating, Azure's growth continues to outpace that of its rivals. On April 30, Microsoft delivered its 11th consecutive quarter of better-than-expected earnings, surpassing analyst estimates once again. Adjusted earnings of $3.46 per share came in 24 cents above the consensus forecast of $3.22, marking a 17.7% year-over-year increase from $2.94. Currently, MSFT's P/E ratio is ~36 compared to a sector median of 22, indicating that the market believes the company will grow faster than its peers, so it's willing to pay more for each dollar of current earnings. Regarding revenues, MSFT's revenue grew 13% year-over-year to $70.1 billion, exceeding expectations. Meanwhile, its Intelligent Cloud segment—which includes Azure—delivered $26.8 billion in revenue, a 21% year-over-year increase. Specifically, Azure and other cloud services experienced a 33% growth rate, surpassing the 31% growth rate of the previous quarter. Despite ongoing uncertainties surrounding its partnership with OpenAI, Microsoft issued a robust outlook for the upcoming fourth quarter. The company expects to deliver double-digit revenue growth of approximately 14%, with projected revenues ranging between $73.15 billion and $74.25 billion, reinforcing confidence in its sustained growth momentum. Azure, in particular, is forecast to grow by 34% to 35% in constant currency during Q4 FY2025. When compared to the broader sector, MSFT is leading the pack according to a TipRanks peers comparison. The Double-Edged Sword of OpenAI Tensions are beginning to emerge in the Microsoft–OpenAI partnership, despite its largely successful track record. Reports indicate that OpenAI may be exploring alternative alliances, including one with Alphabet (GOOGL), even after Microsoft's $14 billion investment since 2019. Adding to the complexity, OpenAI has accused Microsoft of anti-competitive practices. The company's planned transition to a public structure, which it views as essential for attracting future funding, also requires Microsoft's approval as a major stakeholder. These developments suggest that a renegotiation of partnership terms or equity structure could be on the table. Any weakening of the collaboration may impact Microsoft's AI monetization efforts in the near term. Separately, Microsoft recently announced a round of job cuts— part of a broader trend across the tech industry —as firms look to offset the margin impact of heavy AI-related spending. While difficult, these actions reflect an industry-wide recalibration of operating costs amid structural transformation. Elevated Valuations Remain Justified Being the most valuable stock in the world, Microsoft's valuation looks pricey, trading at a forward P/E of 35x. For comparison, Azure competitor Amazon (AMZN), an online retail and cloud computing giant, trades at a 34x forward P/E, while Apple (AAPL) trades at 28x. Nonetheless, the premium is justified, given MSFT's favourable industry-leading market position, strong margins, diversified revenue stream, and huge upside potential to high-growth AI, Quantum computing, and cloud businesses. Is Microsoft a Buy, Hold, or Sell? Wall Street analysts remain bullish on Microsoft stock. The stock commands a Strong Buy consensus rating based on 30 Buys and five Holds assigned in the past three months. Microsoft's average stock price target of $516.14 per share implies a 5% upside potential from current levels over the coming year. Long-Term Outlook Favors MSFT Bulls Microsoft remains firmly positioned at the forefront of the AI and cloud computing landscape. While near-term pressures—including OpenAI-related friction or broader macro challenges—could create volatility, the company's long-term trajectory appears strong. Its track record of innovation and operational excellence supports continued confidence, and I see any short-term pullbacks as potential buying opportunities for long-term investors.
Forbes
17-06-2025
- Business
- Forbes
AI On Windows One Year Later At Microsoft Build 2025
Microsoft CEO Satya Nadella on stage at Build 2025 A year after Microsoft launched the Copilot+ PC, we've finally started to get an idea of what's possible with an on-device NPU and Microsoft's fully featured, AI-enhanced OS. Microsoft suffered a major false start with its Recall function, but now that we're a year past the initial launch, all three major silicon vendors have support for Recall, among other AI-enhanced features. But we're still lacking many of the third-party developers building on top of what Microsoft has enabled in Windows 11 — which is needed to make it a truly AI-accelerated experience that fully leverages the NPU. The Microsoft Build 2025 conference made more moves in that direction with a slew of new announcements to help propel the industry and the Windows ecosystem forward. (Note: Microsoft is an advisory client of my firm, Moor Insights & Strategy.) Microsoft has evolved what was previously called the Windows Copilot Runtime into the Windows AI Foundry. At the heart of AI Foundry is Windows ML, an evolution of DirectML that was previously the center of the Copilot Runtime. Microsoft says that Windows ML enables developers to 'bring their own models' and deploy them efficiently across the complete ecosystem of silicon vendors. The company is also saying that WinML will not only support Copilot+ PCs but also the full breadth of PCs, from entry-level laptops to high-end AI workstations, using whatever silicon is available for AI acceleration. Microsoft also announced that it will embed Anthropic's open source Model Context Protocol and the Agent2Agent Protocol into Windows and other Azure offerings; these protocols create a standardized framework for AI agents to interact with apps and services. Microsoft also announced a new open source project called NLWeb, which looks to extend agentic user experiences into the internet, bridging some of the gaps between the cloud and local devices. I applaud this much broader approach from Microsoft, although I also believe that it creates an even heavier lift for for the company. Still, it should allow for AI features to run on way more PCs. Microsoft's story is shifting away from NPU-only acceleration towards talking more about the GPU and CPU as well. However, the Open Neural Network Exchange AI runtime is still at the center of the Windows ML runtime, which means that there might still be some performance left on the table in the name of ONNX compatibility. That said, some vendors have said that Nvidia's new WinML TensorRT EP is two times faster than its previous Direct ML implementation. I believe that this is the approach that Microsoft should've taken from the beginning, but I'm not sure that the software and hardware ecosystems were quite ready to deploy such a solution. In the end, anything that makes it easier for developers to roll out AI capabilities independent from the AI hardware on the device is a net benefit for the ecosystem and the broader industry. I'm glad to see the Copilot Runtime has evolved into something that developers can actually use — and that stands to make it easier to manage the complexity of four different silicon vendors all with different CPU, GPU and NPU architectures capable of AI. WSL — the Windows Subsystem for Linux — is now open source. While WSL was launched in 2016, it has steadily grown in popularity among developers wanting to run Linux code on Windows without needing to spin up a virtual machine environment. WSL 2 further grew its popularity when it launched in 2019, but some fundamental capabilities were still not available. One of the first requests from the developer community was to open-source WSL to make it easier for developers to use. I believe that finally doing this will simply make Windows an easier platform to develop for and encourage more developers to use it. Microsoft also launched its new 'Advanced Windows Settings,' which was previously called 'Windows Settings for Developers.' This new version gives users, whether they are developers or not, more control over how folders and files are displayed and how version control works. Microsoft says that the new Advanced Settings page has been open-sourced on GitHub and can be maintained via its Windows Store. The Advanced Settings feature manages not only File Explorer, but also Virtual Machines, which is why it used to be called 'for Developers' — since those features are predominantly used by developers. Microsoft wants to continue to grow the Microsoft Store, which is now used by more than 250 million monthly active users, so as one of the first steps it is enabling free account registration for individual developers. This previously required a $19 fee — which will still be charged for companies — but eliminating this fee for individuals could enable younger developers to create apps without that barrier to entry. Microsoft also has a new Store FastTrack program for companies to help them submit their apps to the store more quickly, including waiving the $19 fee. Microsoft is also committing to faster and more transparent certifications for the Store to enable faster turnarounds, clearer guidance and fewer resubmissions. Microsoft also announced that it is making discovery better with enhanced Windows and Store search, which should make it easier to launch apps that users already have installed. I personally hope this gets smarter and more accurate because I launch most of my apps through search, usually not even fully typing the name of the program. Microsoft will also enhance Store search with more intent-aware search, using vector embeddings and semantic ranking for better results. I believe that Microsoft continues to move in the right direction with both open source and AI on Windows. The Windows Copilot Runtime simply wasn't getting the traction that I think Microsoft needed for success, and it's clear that the company has listened to both hardware and software vendors to create WinML and the AI Foundry. WinML and the AI Foundry seem to be better positioned to enable local AI-accelerated applications and finally deliver a lot of the promises of the AI PC. With the AI space moving at breakneck speed, it's good to see that Microsoft is making the necessary adjustments to ensure that the Windows platform doesn't get left behind. Microsoft should be working in lockstep with the ecosystem to enhance the Windows and Azure environments for AI use cases, but I do believe that Microsoft still has the best opportunity to take advantage of productivity in AI with Windows and its suite of apps. I also believe that Copilot should be more at the center of the Windows experience, but with virtually no desktops supporting Copilot+ features, it feels somewhat disjointed. I also believe that Copilot should be integrated more deeply into Windows and should be able to run (with obvious limitations) locally without an internet connection. Time will tell whether Microsoft moves in that direction.
Yahoo
10-06-2025
- Business
- Yahoo
Microsoft Stock (MSFT) Shrugs Off Macro Blues and Returns to Record Highs
Microsoft (MSFT) is rapidly solidifying its leadership in the AI race, fueled by the strength of Azure's cloud platform, the transformative impact of Microsoft 365 Copilot, and strategic investments in AI infrastructure. These growth drivers are delivering impressive revenue and earnings momentum, helping justify the stock's premium valuation, especially for long-term investors. In an AI-driven future, Microsoft's position at the top appears firmly secured. 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 Looking at the tech giant's share price in recent months is a far cry from where sentiment was back in March, when Donald Trump's trade policies with China and fears of a U.S. recession unsettled the stock, sending it back to $350 per share. Given the strong bounce-back, I remain bullish on the stock. Today, every Fortune 500 CEO is racing to integrate AI into their business, and Microsoft's Azure has become the engine powering that transformation. Azure's revenue soared 33% last quarter—well ahead of Wall Street's 30% estimate—with AI services accounting for nearly half of that growth. Microsoft reported $26.75 billion in cloud revenue, up 21% year-over-year, thanks to Azure's ability to deliver customized AI solutions, from predictive analytics in retail to real-time fraud detection in finance. At Build 2025, Microsoft showcased updates to its Maia AI chip, reinforcing its role as an innovation leader in the space. What stands out is the real-world impact. For instance, Walmart (WMT) is using Azure to streamline its supply chain through AI models that anticipate demand surges. Microsoft CFO Amy Hood noted on the latest earnings call that the company is working to expand data center capacity to meet what she called 'insatiable' demand. While infrastructure constraints remain a challenge, they serve as a testament to Azure's accelerating momentum. Simply put, Azure has become the digital backbone of the AI era—and Microsoft is making sure it stays that way. Let's turn to Microsoft 365 Copilot, the company's AI-powered productivity assistant that's rapidly becoming an indispensable tool for modern workplaces. Capable of drafting emails, analyzing data in Excel, and even assisting with real-time coding, Copilot is transforming how employees interact with everyday software. In the most recent quarter, Microsoft's Productivity and Business Processes segment, which includes Copilot, generated $29.94 billion in revenue, marking a 10% year-over-year increase and surpassing analyst expectations. Notably, Barclays' decision to roll out 100,000 Copilot licenses highlights growing enterprise adoption across multiple industries. What sets Copilot apart is its deep integration within the Microsoft ecosystem—seamlessly functioning across Teams, Outlook, Word, and more. This embedded approach provides users with enhanced functionality without disrupting existing workflows. At the Build 2025 conference, Microsoft showcased Copilot's ability to automate routine desktop tasks, positioning it not just as a tool but as a true digital collaborator. CEO Satya Nadella highlighted use cases in sectors like healthcare, where organizations are leveraging Copilot to streamline administrative tasks such as managing patient records, despite some initial concerns about data privacy. While the $30-per-user monthly fee may give some decision-makers pause, the potential for significant time savings makes a strong case. Ultimately, Microsoft is redefining productivity by embedding AI at the core of the digital workplace. Microsoft is allocating a massive $80 billion toward AI infrastructure this year, accelerating its data center expansion at a rapid clip. However, last quarter marked a slight decline in capital expenditures—from $22.6 billion to $21.4 billion—signaling a shift from sheer scale to strategic efficiency. Rather than cost-cutting, this appears to reflect Microsoft's growing confidence in its internal AI capabilities. As the chart indicates, MSFT's R&D spend remains the most considerable portion of its operating expenses. A prime example is the Discovery platform, which recently identified a non-toxic data center coolant in just 200 hours, showcasing how AI is already improving operational efficiency. CEO Satya Nadella has also emphasized that refining AI models, whether developed with OpenAI or independently, is significantly reducing costs while enhancing performance. This disciplined investment approach seems to be paying off. Major clients, such as Siemens, are already leveraging Microsoft's AI for advanced manufacturing processes, underscoring the tangible, real-world impact of these efforts. Microsoft's bet on more innovative AI-driven infrastructure appears not only calculated but increasingly validated. Here's where the investment case for Microsoft becomes especially compelling. Azure and Copilot aren't just driving revenue—they're fueling significant profit expansion. These high-margin segments are helping lift Microsoft's net margins toward the 45–50% range, up from the high 30% level earlier in fiscal Q1 2025. Analysts project earnings per share will grow by 13.5% this year, with Q3 FY25 already posting an impressive $3.46 per share—a robust 18% year-over-year increase. Microsoft's bottom-line growth is clearly accelerating, powered by the scalability of its AI initiatives. Yes, Microsoft stock trades at a premium P/E of 35, but exceptional companies rarely come cheap. With strong execution across cloud, AI, and productivity tools, the market's valuation reflects real momentum, not just hype. Investors waiting for a significant pullback may find themselves on the sidelines as Microsoft continues to outperform its peers. This is a business in its prime, and the long-term upside remains firmly intact. Despite trading near its highs, Wall Street remains extremely bullish on MSFT stock. MSFT features a Strong Buy consensus rating, with 31 analysts currently bullish and five neutral. Not a single analyst is bearish on the stock. MSFT's average stock forecast of $514.93 indicates upside potential of about 10% over the next twelve months. Microsoft's AI-powered rise is a standout example of strategic innovation and flawless execution. With Azure, Copilot, and well-timed infrastructure investments driving both top-line and bottom-line growth, the company's premium valuation looks well-earned. Backed by $80 billion in AI-related investments and a clear commitment to staying ahead of industry trends, Microsoft is firmly positioned at the forefront of the AI revolution. I continue to view MSFT as a premier tech holding—operating at peak performance with strong momentum and no indication of slowing down. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
Business Insider
10-06-2025
- Business
- Business Insider
Microsoft Stock (MSFT) Shrugs Off Macro Blues and Returns to Record Highs
Microsoft (MSFT) is rapidly solidifying its leadership in the AI race, fueled by the strength of Azure's cloud platform, the transformative impact of Microsoft 365 Copilot, and strategic investments in AI infrastructure. These growth drivers are delivering impressive revenue and earnings momentum, helping justify the stock's premium valuation, especially for long-term investors. In an AI-driven future, Microsoft's position at the top appears firmly secured. Confident Investing Starts Here: Looking at the tech giant's share price in recent months is a far cry from where sentiment was back in March, when Donald Trump's trade policies with China and fears of a U.S. recession unsettled the stock, sending it back to $350 per share. Given the strong bounce-back, I remain bullish on the stock. Today, every Fortune 500 CEO is racing to integrate AI into their business, and Microsoft's Azure has become the engine powering that transformation. Azure's revenue soared 33% last quarter—well ahead of Wall Street's 30% estimate —with AI services accounting for nearly half of that growth. Microsoft reported $26.75 billion in cloud revenue, up 21% year-over-year, thanks to Azure's ability to deliver customized AI solutions, from predictive analytics in retail to real-time fraud detection in finance. At Build 2025, Microsoft showcased updates to its Maia AI chip, reinforcing its role as an innovation leader in the space. What stands out is the real-world impact. For instance, Walmart (WMT) is using Azure to streamline its supply chain through AI models that anticipate demand surges. Microsoft CFO Amy Hood noted on the latest earnings call that the company is working to expand data center capacity to meet what she called 'insatiable' demand. While infrastructure constraints remain a challenge, they serve as a testament to Azure's accelerating momentum. Simply put, Azure has become the digital backbone of the AI era—and Microsoft is making sure it stays that way. MSFT Envisages Everyone to Have an AI Copilot Let's turn to Microsoft 365 Copilot, the company's AI-powered productivity assistant that's rapidly becoming an indispensable tool for modern workplaces. Capable of drafting emails, analyzing data in Excel, and even assisting with real-time coding, Copilot is transforming how employees interact with everyday software. In the most recent quarter, Microsoft's Productivity and Business Processes segment, which includes Copilot, generated $29.94 billion in revenue, marking a 10% year-over-year increase and surpassing analyst expectations. Notably, Barclays' decision to roll out 100,000 Copilot licenses highlights growing enterprise adoption across multiple industries. What sets Copilot apart is its deep integration within the Microsoft ecosystem—seamlessly functioning across Teams, Outlook, Word, and more. This embedded approach provides users with enhanced functionality without disrupting existing workflows. At the Build 2025 conference, Microsoft showcased Copilot's ability to automate routine desktop tasks, positioning it not just as a tool but as a true digital collaborator. CEO Satya Nadella highlighted use cases in sectors like healthcare, where organizations are leveraging Copilot to streamline administrative tasks such as managing patient records, despite some initial concerns about data privacy. While the $30-per-user monthly fee may give some decision-makers pause, the potential for significant time savings makes a strong case. Ultimately, Microsoft is redefining productivity by embedding AI at the core of the digital workplace. MSFT Earmarks Future AI Spend, Byte by Byte Microsoft is allocating a massive $80 billion toward AI infrastructure this year, accelerating its data center expansion at a rapid clip. However, last quarter marked a slight decline in capital expenditures—from $22.6 billion to $21.4 billion—signaling a shift from sheer scale to strategic efficiency. Rather than cost-cutting, this appears to reflect Microsoft's growing confidence in its internal AI capabilities. As the chart indicates, MSFT's R&D spend remains the most considerable portion of its operating expenses. A prime example is the Discovery platform, which recently identified a non-toxic data center coolant in just 200 hours, showcasing how AI is already improving operational efficiency. CEO Satya Nadella has also emphasized that refining AI models, whether developed with OpenAI or independently, is significantly reducing costs while enhancing performance. This disciplined investment approach seems to be paying off. Major clients, such as Siemens, are already leveraging Microsoft's AI for advanced manufacturing processes, underscoring the tangible, real-world impact of these efforts. Microsoft's bet on more innovative AI-driven infrastructure appears not only calculated but increasingly validated. MSFT's Profit Machine Keeps Humming Here's where the investment case for Microsoft becomes especially compelling. Azure and Copilot aren't just driving revenue—they're fueling significant profit expansion. These high-margin segments are helping lift Microsoft's net margins toward the 45–50% range, up from the high 30% level earlier in fiscal Q1 2025. Analysts project earnings per share will grow by 13.5% this year, with Q3 FY25 already posting an impressive $3.46 per share—a robust 18% year-over-year increase. Microsoft's bottom-line growth is clearly accelerating, powered by the scalability of its AI initiatives. Yes, Microsoft stock trades at a premium P/E of 35, but exceptional companies rarely come cheap. With strong execution across cloud, AI, and productivity tools, the market's valuation reflects real momentum, not just hype. Investors waiting for a significant pullback may find themselves on the sidelines as Microsoft continues to outperform its peers. This is a business in its prime, and the long-term upside remains firmly intact. What is Microsoft's 12-Month Price Target? Despite trading near its highs, Wall Street remains extremely bullish on MSFT stock. MSFT features a Strong Buy consensus rating, with 31 analysts currently bullish and five neutral. Not a single analyst is bearish on the stock. MSFT's average stock forecast of $514.93 indicates upside potential of about 10% over the next twelve months. Microsoft at Full Throttle Justifies Its Premium Microsoft's AI-powered rise is a standout example of strategic innovation and flawless execution. With Azure, Copilot, and well-timed infrastructure investments driving both top-line and bottom-line growth, the company's premium valuation looks well-earned. Backed by $80 billion in AI-related investments and a clear commitment to staying ahead of industry trends, Microsoft is firmly positioned at the forefront of the AI revolution. I continue to view MSFT as a premier tech holding—operating at peak performance with strong momentum and no indication of slowing down.
