Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery

Microsoft Corporation is strategically positioned for enterprise AI adoption, emphasizing security and agentic AI deployment to drive confidence among customers. MSFT's silicon-to-software model, including Maia 200/300 custom chips, aims to restore Intelligent Cloud margin growth, with material benefits expected by eFY28. I reiterate a Strong Buy rating on MSFT with a $765 price target, reflecting a 20.20x eFY28 EV/EBITDA multiple and a robust cloud growth outlook.