Bernstein's analyst Mark Moerdler has reaffirmed an Outperform rating on Microsoft's stock and increased his price target to $400 from $398, citing the potential of the company's AI cloud-computing services to yield higher profits than initially anticipated. Moerdler's research suggests that Microsoft has taken a significant lead in the development of Generative AI offerings, platform software, and design architectures. Microsoft's CFO Amy Hood earlier this month reaffirmed the company's optimistic forecast that its suite of AI tools will reach $10 billion in revenue at a faster rate than any other software business in its history.