On October 29, TD Cowen raised its price target on Microsoft from $625 to $650 and maintained its Buy rating.

According to Sina Finance, the firm cited accelerating Azure cloud growth and prospects for margin improvement. Azure’s revenue growth rate in the latest fiscal quarter was 6 percentage points higher than in the previous quarter and 3 percentage points above market expectations.

Microsoft’s guidance for the second fiscal quarter was about 5 percentage points above market expectations, with Azure revenue growth expected to reach around 50%, driven mainly by demand related to the Foundry platform and OpenAI.

Although some third-party GPU computing capacity deliveries were delayed, Microsoft increased available capacity by improving GPU utilization. TD Cowen said continued Azure growth acceleration and margin improvement could support further gains in Microsoft’s stock.