Jefferies Maintains Buy on Microsoft (MSFT) Amid Strong RPO Growth and Copilot Demand

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In its probe enactment connected December 4, Jefferies highlighted that Microsoft Corporation (NASDAQ:MSFT) pushed backmost against the study from The Information, debating that the information tells a precise antithetic story. Microsoft highlighted a 51% RPO maturation and beardown request that causes capableness shortages. Jefferies added that Copilot adoption is inactive strong, saying The Information ” wholly missed the point.” The steadfast maintained a Buy standing and $490 terms people connected MSFT.

Microsoft Corporation (NASDAQ:MSFT) is up by implicit 15% since the commencement of 2025. These beardown returns grounds the company’s increasing engagement successful the AI marketplace and its relation arsenic 1 of the largest unreality providers. In its fiscal Q1 2026, the company’s Cloud gross came successful astatine $49.1 billion, which jumped 26% from the aforesaid play past year. Azure and different unreality work gross roseate by 40% driven by customers’ penchant for the platform.

In its net report, Satya Nadella, Chairman & CEO, highlighted that the institution is experiencing accordant request for its AI platform, which is steering the company’s investments successful some superior and talent. He further announced plans to summation the company’s AI capableness by implicit 80% this twelvemonth and said that the institution is connected way to treble its full information halfway footprint successful the adjacent 2 years.

While we admit the imaginable of MSFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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