Since Microsoft (MSFT.US) announced its 2FQ results for the period ended December 2025 at the end of last month, its share price has fallen by about 15% in total, Goldman Sachs released a research report saying.

This is believed to be due to the higher capital expenditure guidance, but management did not simultaneously raise its Azure growth forecast, sparking market question and concerns about the return on capital and competition Azure faces from peers, as well as concerns about whether the Office 365 business will be impacted by new AI competition.

However, the broker still believed that capital expenditure on internal R&D is a long-term investment, some of which is not directly monetized at present but may be monetized in the future and remains crucial to Microsoft's overall development strategy.

Currently, Goldman Sachs raised its forecast for the proportion of Microsoft's computing resources used internally from about 10% to about 20%, which is believed to drive Microsoft's multi-dimensional strategic AI positioning in the future and bring better returns in the medium term.

Therefore, the broker kept rating at Buy, with a target price of US$600.
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AASTOCKS Financial News
Website: www.aastocks.com

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