Microsoft plans $10 billion-plus Gulf investment with focus on resilience

Citizens analyst Patrick Walravens maintained a Market Outperform rating and $550 price target for Microsoft (MSFT), citing CEO Satya Nadella's AI development priorities. Microsoft has outlined four AI priorities and a code of conduct for future AI systems. Other analysts, like RBC Capital, have also issued updates on Microsoft, focusing on its cloud and organizational changes.

Microsoft (MSFT) received an upgrade to 'buy' from 'hold' and a price target increase to $575 from $530 by Stifel analyst Brad Reback. The analyst cited the company's progress in cloud computing and software. The stock fluctuated despite the positive analyst actions.

Nscale, a UK-based neocloud company, secured a $24M deal with ByteDance subsidiary Spring for access to 2,304 Nvidia B200 chips in Norway. The deal, revealed in Nscale's IPO filing, accounted for 73% of its 2025 revenue. Nscale also secured investments from Nvidia and Microsoft, with Nvidia committing over $2B in AI chip purchases. The deal raises regulatory and reputational risks due to U.S. export controls on China.

Microsoft disrupted EvilTokens, a phishing service that used AI to compromise 12,000 accounts at 10,000 organizations, stealing payment data. The service charged fees and automated fraud schemes. Microsoft seized 50 websites and 150 domains, with UK police arresting two suspects. Affected sectors included financial services and healthcare, primarily in the US and Canada.

IREN, a Bitcoin miner turned AI cloud operator, reported $7.6B in cash, with $14B in funding capacity. Microsoft accepted its first Horizon deployment, supporting IREN's growth plans. IREN targets 300MW IT load in 2026 and 800MW in 2027, with $25B-$30B in fiscal 2027 capital spending. Hedge funds increased holdings, while short interest remains high. Microsoft's deal reduces demand risk but not construction challenges.

Stifel upgraded Microsoft (MSFT) to Buy with a $575 price target, citing sustained Azure growth, OpenAI contributions, and improved efficiency. Analysts expect mid-to-upper-teens revenue growth, offsetting moderating seat growth. Stifel revised earlier margin concerns due to Azure efficiency gains and reduced OpenAI payments.