Microsoft's (MSFT) Azure is likely to sustain strong long-term growth, while artificial intelligence revenue gradually rises with the increasing adoption of Copilot, Truist Securities said in a note Wednesday.
The brokerage said it expects a solid Q4 and accompanying outlook and added that broader industry dynamics will continue to result in a sustained supply-demand imbalance, and thus, it expects "Azure growth remaining at a consistently strong level for the foreseeable future."
"A variety of factors could turn the tide on negative investor sentiment on high capex dynamics at least in the case of Microsoft," Truist said.
Truist maintained a buy rating with a $575 price target.
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