We’re taking advantage of a weak Microsoft (MSFT) stock price to add more shares, benefiting from its strong cloud position. With the adoption of AI on the rise in the enterprise and government sectors, Microsoft’s cloud business is expected to see growth, driving margins to rebound over time.
Micron’s comments suggest memory chip supply-demand dynamics will improve soon, while Samsung and SK Hynix are taking steps to address demand for digital infrastructure. This bodes well for cloud bookings at Microsoft, as the company converts its $627 billion in performance obligations into revenue.
We’re revising our MSFT price target to $345 from $360, ahead of a potential rebound. Our trade will be executed at or near the mentioned share price, with the expectation that subscribers will see the trade’s executed price after completion.
Source: https://pro.thestreet.com/portfolio/adding-to-our-microsoft-position-on-weakness