BUZZ-Street View: Azure keeps Microsoft's AI feast going

October 29 - ** Microsoft MSFT.O reported first-quarter cloud business revenue that exceeded Wall Street expectations (link) on Wednesday, with strong growth in Azure indicating that its massive investments in artificial intelligence are starting to pay off

** Shares rose 4% in premarket trading

Azure's AI growth momentum has not yet stalled

** JPMorgan (maintains "Overweight" rating, target price: $625) stated that despite facing capacity constraints, Azure is still expected to achieve accelerated growth next quarter. Microsoft continues to have sufficient financial strength to support AI investment while sustaining profitability and free cash flow growth.

** Barclays ("Overweight", target price: $610) said Azure's growth rate is now approaching 50%, and additional capacity added in the second half shows that the AI-driven growth momentum still has room, while growth in the Office business is expected to continue accelerating over the next few quarters.

** Piper Sandler ("Overweight", target price: $650) pointed out that the company's ability to turn infrastructure efficiency into profits and the rising adoption rate of Copilot should support continued accelerating growth for Azure and its commercial cloud business.

** Morgan Stanley ("Overweight", target price $650) said that improved engineering efficiency is creating additional capacity that Microsoft can monetize, which will both support further Azure growth and help offset the massive investments in artificial intelligence.

(For the convenience of non-native English speakers, Reuters provides its reports in several other languages through automated translation. As automated translation may contain errors or lack required context, Reuters does not guarantee the accuracy of the automated translation, which is provided solely as a convenience to readers. Reuters is not responsible for any damage or loss caused by the use of automated translation.)