Bernstein Analyst on $MSFT Stock: "Could current market concerns actually be the upcoming positive catalyst for the stock?"



"The market is worried about the company's massive capital expenditure on AI, but there are some points that dispel this fear:

1. The capacity and infrastructure the company is building now will only take less than 6 months to start generating actual revenue ( and investors are ignoring this time gap )

2. A large part of the investment goes into applications like Copilot, which generates SaaS system revenues with strong profit margins

3. Internal use and model training have not negatively affected R&D margins

Based on these factors, we expect Azure cloud revenue growth to accelerate in the third quarter, and for the growth to be ( as strong or stronger ) in the fourth quarter!"

$MSFT
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