Following the release of Microsoft's latest quarterly results, the market reassessed the software giant's growth prospects. Although the stock price briefly hovered around $400, the expansion of its cloud business and AI-related revenues prompted Wall Street to raise its valuation expectations for Microsoft.

Azure's annual revenue surpasses $100 billion

The report noted that Microsoft disclosed in its earnings call that Azure's annual revenue has exceeded $100 billion. This progress reflects the continued advancement of its multi-model AI strategy and strengthens market attention to its enterprise-level AI commercialization capabilities.

Microsoft also reported total revenue exceeding $331 billion for the year, up 18% year-over-year; net profit increased by 31%. Following the earnings release, analysts began adjusting their assessments of Microsoft's future stock price.

Goldman Sachs gives a higher target price

According to reports, Goldman Sachs software equity research analyst Gabriela Borges stated in a report to clients on July 30 that Microsoft's stock price could rise above $600. The article notes that this is one of the more aggressive price targets Microsoft has received in the past two months.

The analyst views the latest earnings report as a major catalyst for further stock price increases, particularly the revenue expansion driven by cloud business growth and AI initiatives.

The market is focused on the speed at which AI businesses are realized.

Microsoft's recent stock performance has been relatively lackluster, indicating that beyond its strong earnings, the market is still observing whether its AI investments can continue to translate into higher growth and improved profit margins. Going forward, the growth momentum of Azure and the commercial contribution of AI products will remain key factors to watch.

The article also mentioned that other Wall Street institutions adjusted their expectations for Microsoft after the earnings report, but the market focus remained on the growth quality of the cloud computing and AI businesses.