UBS raised its price target on Microsoft to $675 from $525 and kept its 'buy' rating, arguing strong AI demand supports higher growth expectations. The bank sees the valuation as reasonable at 23 times estimated 2027 adjusted earnings despite a 39% rally since the June-quarter results. The market expects Azure revenue growth of 47% for the September quarter, a potential two-percentage-point beat that UBS believes is achievable given enterprise demand, rising AI infrastructure spending, higher OpenAI revenues and rising hosted GPU prices. UBS also sees upside from Microsoft 365 as usage-based pricing for Copilot expands, and has lifted its valuation multiple to 25 times estimated 2028 adjusted earnings from 19 times. With expectations high, the bank notes less room for disappointment at the 28 October results.
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Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/14/2026 | 533.69 |
| Change that session | -1.80% |
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/14/2026 | 221.30 |
| Change that session | -3.16% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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