Microsoft (MSFT) Jefferies Forecasts a Further 25% Upside

TD Cowen raised its Microsoft (MSFT) price target to $625 from $540, citing strong Azure performance and growth expectations. The firm expects higher earnings and guidance due to factors like Fairwater's contribution and OpenAI growth. Microsoft's stock has risen 40% since its last earnings report, with a PEG ratio of 0.95. Other analysts also raised their price targets, with Melius setting a target of $665. Microsoft's revenue grew 18% over the last twelve months.

Microsoft announced plans to wind down its Nairobi engineering hub, affecting nearly 400 employees. The company cited proposed changes in its Kenyan engineering department. Microsoft's investment in Kenya totaled $100 million over seven years. The Kenyan government expressed concerns but agreed to a joint action plan for AI and cloud services.

Microsoft (MSFT) announced advancements in its Maia system, with Maia 300 targeting 40% more tokens per megawatt, reducing power use by 28.6% versus top GPUs. Maia 200 is live for inference workloads. Azure reported $101.9B revenue, up 40% YoY. MSFT stock traded at $540.41, down 0.56%.

Microsoft introduced the Maia 300 AI chip, aiming to reduce reliance on Nvidia. The chip, set for 2027 deployment, offers 40% more efficiency than leading GPUs. Microsoft plans to use it across its products, with 1M units expected that year. Nvidia remains dominant in AI training chips but faces growing competition from tech giants.

The Nasdaq Composite fell 1.88% to 26,692.87 on October 14, 2026, driven by higher-than-expected inflation data and a warning from ASML about semiconductor demand. Key tech stocks like AMD, Micron, and Nvidia declined, while Apple rose 0.3%. The index is now 3.7% below its 52-week high.

The Trump administration suspended Microsoft (MSFT) and other tech firms from an H-1B green card program, citing system abuse. MSFT is modestly undervalued at $592.76 vs. $533.88, with a GF Score of 99/100. Insiders sold $114.6M in shares over 12 months. The move may impact recruitment and costs but analysts expect limited sector-wide effects.