Microsoft (NASDAQ:MSFT) is doubling down on AI—pushing in-house models across Azure, Copilot and Microsoft 365, securing vast GPU capacity and data-center deals while forecasting double-digit revenue growth to FY2027—amid investor litigation and mixed analyst price-target moves.

Previous Week Recap

  • MSFT Price Target Raised: Evercore raised MSFT price target to $525 (from $510), cites double-digit revenue and operating income growth by FY2027 driven by AI, Azure strength, Copilot adoption and higher capex (~$210B).
  • Microsoft MSFT Class Action: Class action filed in U.S. District Court (Western WA) accusing Microsoft of misleading investors about Azure and Copilot after a sharp stock drop; complaint seeks federal relief.
  • Microsoft Pushes In-House AI: Microsoft tells sales to push its in-house AI models as cheaper, faster, and easier to use than OpenAI, Google, and Anthropic, promoting them across Azure, Microsoft 365 and Copilot for business.
  • Copilot Adoption Surges: Microsoft expanded Anthropic model use across Copilot and Foundry; Copilot now exceeds 20 million paid seats, highlighting demand for MSFT AI-driven products.
  • MSFT Hyperscaler In AI Deals: Microsoft (MSFT) is a key hyperscaler in data-center stake sales tied to AI expansion, participating in deals worth potentially tens of billions as a major demand-side buyer.
  • Fiscal 2027 AI Platform: Microsoft says fiscal‑2027 strategy centers on an end‑to‑end AI platform, highlighting cost cuts, stronger security, and expanded tools for enterprise AI deployment and monitoring.
  • Wells Fargo Cuts Target: Wells Fargo cut Microsoft (MSFT) price target to $625 from $650, updating its valuation forecast for MSFT shares.
  • Nebius GPU Deal: Microsoft signed a five-year deal with Nebius for up to $19.4B in dedicated GPU capacity, including deployment of 100,000+ Nvidia GB300 chips for Nebius data-center expansion.
  • MSFT 3M Partnership: MSFT partners with 3M: Azure Cloud will deploy 3M's Expanded Beam Optical tech in Azure data centers; 3M will use Microsoft AI across service, finance, sales and marketing.
  • Amsterdam Hyperscale Approval: In January 2026 Microsoft gained Dutch approval for a hyperscale Amsterdam data center made of three towers, each kept below national size limits that trigger stricter location rules.

This is an AI-generated summary and may contain inaccuracies. Please verify any important information with the original sources.