MSFT Price-Target Cuts After Slower Cloud Growth and AI Spending

Analysts trim Microsoft’s price targets after its latest earnings, citing slower cloud growth and higher AI-related spending. Scotiabank and TD Cowen cut targets to 600 and 610, JPMorgan lowered to 550 while keeping Buy ratings. Microsoft beat on both revenue and earnings, but cloud growth slowed to 39% from 40% and AI capex rose to $37.5 billion, sending MSFT stock down about 12% after the report. Despite the sell-off, the stock remains rated Strong Buy with an average target around $604.13, implying roughly 43% upside from current levels as analysts weigh AI investments against cloud momentum.