Goldman Sachs (GS, Financial) continues to favour Microsoft (MSFT, Financial), affirming a "Buy" rating and a $500 price target. This stance stands in contrast to reports of possible AI data center lease cancellations or delays at Microsoft. Market commentators note that any such moves could reflect the tech giant's evolving priorities rather than a reduction in its AI efforts.
Goldman Sachs' latest briefing highlights Microsoft's broad, stable revenue, its strong balance sheet, and ongoing efforts in cloud and AI. Bank analysts say these factors should allow Microsoft to ride out coming fluctuations and go after longer term growth. Although the lease worries, Microsoft's stock floats near historical peaks, implying investors agree with Goldman.
If Microsoft does a good job in integrating its AI knowledge across product lines, the data center projects may have no effect on the delayed or scrapped projects. But still, uncertainty remains with respect to these reported lease changes when it comes to Goldman's faith in Microsoft's strategic roadmap.
