Microsoft's Positioning Across Infrastructure, Software Provides Multiple AI Monetization Paths, BofA Says

11:39 AM EDT, 10/29/2026 (MT Newswires) -- Microsoft's (MSFT) positioning across infrastructure, models, and software provides multiple paths to monetize AI demand, BofA Securities said in a Thursday note. The company is facing some vendor delays, but guided for higher fiscal Q2 Azure growth on GPU and CPU efficiency gains that ramp revenue yields from the existing infrastructure, key to supporting growth amid a supply-constrained backdrop, analysts wrote. Microsoft reported fiscal Q1 adjusted earnings late Wednesday of $4.89 per diluted share, up from $4.13 a year earlier. Analysts surveyed by FactSet expected $4.71. Revenue for the quarter ended Sept. 30 was $92.28 billion, up from $77.67 billion a year earlier. Analysts expected $90.62 billion. Copilot revenue grew sequentially in fiscal Q1, with new growth opportunities, bigger deployments, and consumption billing driving average revenue per user, according to the note. The brokerage said it reiterated its buy rating on the stock and raised its price target to $630 per share from $600. Price: 523.06, Change: -7.95, Percent Change: -1.50