Microsoft Q2 Preview: Management Caught AI Lightning In A Bottle
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Microsoft's strategic investments in AI, including OpenAI, have strengthened its leadership in the sector. Azure's growth is robust, with AI services expected to add $10B in ARR by Q2 FY2025. Despite data center constraints, a 15% CAGR supports a Buy recommendation.
January 17, 2025 | 5:00 pm
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Microsoft's strategic investments in AI, including OpenAI, have strengthened its leadership in the sector. Azure's growth is robust, with AI services expected to add $10B in ARR by Q2 FY2025. Despite data center constraints, a 15% CAGR supports a Buy recommendation.
Microsoft's strategic focus on AI and its investment in OpenAI have positioned it as a leader in the AI sector. Azure's growth, driven by AI services, is expected to significantly contribute to revenue, adding $10B in ARR by Q2 FY2025. Despite potential data center capacity constraints, the company's projected 15% CAGR and a long-term price target of $870 by 2030 support a strong Buy recommendation.
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