Citigroup Adjusts Price Target on Microsoft to $636 From $600

Microsoft President Brad Smith called for global AI regulations, citing gaps in safety rules compared to everyday products. He proposed pre-release vetting and incident reporting. Smith's stance contrasts with Trump's self-regulation push. Microsoft, along with other AI firms, signed a voluntary safety pledge, but Smith argues enforceable rules are needed. Smith also suggested the UK could lead global AI standards.

Microsoft's stock rose from $352.83 in June to a record $543.45, adding $1.4 trillion in value. Azure's 43% growth and $100B revenue boosted shares. CEO Nadella emphasized AI strategy and data control. Market value nears $4 trillion. Next earnings report due Oct 28.

Microsoft president Brad Smith urged industry and governments to establish 'real and effective safety standards' for AI, citing recent security incidents. He proposed safety brakes for AI agents, mandatory incident reporting, and stronger pre-release testing. Smith is among industry leaders calling for increased AI safety measures, with Nvidia's Jensen Huang also emphasizing the need for safe AI development.

Microsoft's Azure division is evaluating a 20% cost reduction, potentially impacting 11,500 employees, as part of a restructuring to improve operational efficiency. Azure's revenue grew 40% YoY to $101.9B. Microsoft's stock is trading at $543.45, 8.3% below its intrinsic value of $592.48, with a GF Score of 99/100. Insiders have sold $114.6M in shares over the past year.

The U.S. Department of Labor suspended Microsoft (MSFT) and Adobe (ADBE) from the Permanent Labor Certification Program, alleging visa system abuse. The Trump Administration also excluded several tech firms. The government claims companies commit fraud, leaving Americans jobless. Vice President JD Vance criticized Microsoft for layoffs while applying for visas.

Microsoft's Azure division is exploring 20% cost cuts, according to a report, to offset AI data center spending and retain talent. The company disputes the characterization, citing routine scenario planning. Azure revenue grew 40% YoY to $101.9B. Leadership changes include Arun Ulag overseeing key cloud units. MSFT stock is up 12% YTD.