Microsoft's Generative AI Leadership is 'Clear,' Morgan Stanley Says, Citing Strong Demand

A Morgan Stanley report, based on a second-quarter survey of Chief Information Officers, calls Microsoft's generative AI leadership "clear." The bank stated Microsoft will capture an increasing share of AI-related spending. Robust and growing demand for its Azure, Microsoft 365, and Copilot services drives this trend.

62% of CIOs plan to increase their Azure budgets over the next year. This figure is up from 57% in the prior quarter.

Separately, 65% of CIOs expect to boost spending on Microsoft 365 and Office 365.

Morgan Stanley maintained its Overweight rating and a $650 price target on the stock.