Wedbush analyst Daniel Ives reiterated an Outperform rating on Microsoft Corp (NASDAQ:MSFT) with a $400 price target. Ives believes that AI adoption is happening quicker than expected, which could drive strong growth for Microsoft. The company's Azure checks show an uptick in AI-driven activity, which could lead to Microsoft exceeding its 25%-26% Azure growth guidance in FY1Q. Ives also estimates that for every $100 of cloud Azure spent with Microsoft in the last few years, there is an incremental $35-$40 of AI spent now on the table.