GERMANY: Microsoft AI investment concerns have over-reflected Azure growth or 41%

On 21 July, in its latest study, Deutsche Bank stated that market concerns about the surge in Microsoft capital expenditure, the return on AI investment and the concentration of OpenAI orders had been significantly overstretched and that current valuations were attractive, maintaining “buy-in” ratings and target prices of $550. The Deutsche Bank projects that Microsoft will receive $87.4 billion in the fourth financial quarter (the second quarter of the corresponding year), an increase of 14.3 per cent over the same period; the non-United States General Accounting Standards (GAS) yield $4.17 per share. Azure is expected to grow at a rate of between 40 and 41 per cent at fixed exchange rates, and growth will continue to be underpinned by enterprise cloud migration, AI computing needs and new data centre capacity. Microsoft 365 business cloud revenues are expected to increase by 15 to 16 per cent, and Copilot pays seats by the end of the year or over 25 million。