BofA: Microsoft's Enterprise AI Advantage Further Strengthened, Azure Demand May Continue to Outpace Supply

Odaily reports: In its latest research note, Bank of America pointed out that with the continued expansion of its Azure cloud business and the accelerated commercialization of Copilot, Microsoft's competitive advantage in enterprise AI applications, security, and infrastructure has been further solidified. The bank expects Azure demand to continue exceeding supply through fiscal year 2027 and has raised its earnings forecasts for Microsoft over the next three years. BofA estimates that Microsoft's capital expenditure (including finance leases) will reach $220.7 billion in fiscal year 2027, up 51.9% year-over-year; full-year revenue is projected at approximately $391.9 billion, with earnings per share of $19.70. The bank maintains its "Buy" rating and $600 price target.