MSFT
Wall Street’s still got the Microsoft glow
Microsoft just got a fresh thumbs-up from Truist Securities, which reiterated a Buy rating and kept a $675 price target on the stock. That’s the kind of note that says, “Yes, the OpenAI situation is messy, but we’re not remotely panicking.”
The OpenAI plot twist didn’t scare everyone off
The market has been side-eyeing Microsoft after OpenAI said it would broaden its cloud relationships and make its IP license with Microsoft non-exclusive. In plain English: the relationship is still there, but it looks a little less like a one-company romance and a little more like an open relationship.
Truist’s take? Microsoft may actually come out better if it no longer has to pay a revenue share to OpenAI. That could help gross margins, which is investor-speak for “more money stays in the jar.”
Why investors care
This isn’t just about one analyst note. It’s about the bigger AI trade:
- Microsoft is still seen as a core AI platform play
- The company is also building more in-house models, which lowers dependence on OpenAI
- A strong quality score and resilient fundamentals give the stock some cushion even when headlines get wobbly
The shares are still down year-to-date, so the market clearly hasn’t exactly thrown a parade. But if Truist is right, investors may be looking at a classic situation where the drama is louder than the fundamentals.
Big picture: Microsoft’s AI story is evolving, not collapsing. And in this market, that still counts as a pretty good problem to have.