Microsoft (MSFT.US) was favored by Wells Fargo's "overweight" on the eve of Q2 financial report, and Azure is expected to help accelerate revenue in the second half of the year
Wells Fargo reiterated its "overweight" rating on Microsoft and maintained its price target of $515 ahead of Microsoft's second-quarter fiscal 2025 results. Analysts pointed out that Microsoft Cloud revenue and order intake are expected to continue to benefit from continued consolidation in the software space. At the same time, Microsoft's leading position in the field of artificial intelligence, especially Azure AI, will also provide strong support for its performance growth. However, they are optimistic about the future development of Azure, believing that the improvement of Azure will accelerate the company's revenue growth again in the second half of the year, which is expected to reach an increase of more than ten percentage points.