Microsoft Corporation Nasdak: msft The shares rise by 20.55 %, proving that investors are ready to overlook the evaluation if they get a return on this investment. Microsoft is traded by about 38X futures with a slight to the historical average.
Microsoft today
As of 04:00 pm
- 52 weeks
- $ 344.79
▼
555.45 dollars
- Profit
- 0.70 %
- P/E ratio.
- 37.97
- The target price
- 612.54 dollars
This did not prevent investors from placing a floor on the arrow. In fact, and The target consensus price for MSFT share It is $ 612.54, which gives investors 20 % of the closing price on September 18.
Companies such as Microsoft and many of their amazing seven counterparts build and finance the artificial intelligence economy (AI). Specifically, at Microsoft It committed about $ 80 billion of capital expenses For the year 2025 financial. This is the largest annual infrastructure investment in the company’s history.
More than half of this amount is targeted for the expansion of the improved data center in the United States. Money will support Easter facilities, allocated silicon, edge clouds, sustainable energy, and advanced cooling techniques.
However, Microsoft also explains that it can continue to finance its growth in the future while providing the value of the shareholders. It is not possible to say the same for other technology shares under scrutiny in 2025. Investors were ready to reward technological stocks without expecting anything in return. But as artificial intelligence passes on the main current, investors want to see a return on this investment.
The growth of Amnesty International Feelo, but the cloud is still essential
Amnesty International’s ambitions from Microsoft occupied the headlines, thanks to its deep partnership with Openai. Since 2019, Microsoft has invested more than $ 11 billion in Openai. This partnership provides access to Microsoft to Openai AI models, an important AI’s generation strategy for the company.
Microsoft has exclusive access to large language models (LLMS) such as ChatGPT. Then the company takes the advanced Chatgpt possibilities and integrates it into products such as Copilot in Microsoft 365, GitHub and Azure Services.
However, while artificial intelligence has fueled the enthusiasm of investors, the cloud microsoft business remains the basis of its growth. The annual revenue of Azure 75 billion dollars in the fiscal year exceeded 2025, increasing by 39 % on an annual basis in the last quarter, which greatly exceeded the aesthetics of the revenues associated with Microsoft and the SAAS sector for the broader institutions.
With approximately 25 % of the global market share, analysts now see Azure as the best competitor for AWS and the most integrated platform for hybrid and multi -black publishing.
The growing AZURE growth pays the demand for high -performance infrastructure from the burdens of work of artificial intelligence, the deportation of institutions, the ecosystem of the product in Microsoft, as shown The quarterly cloud revenues rise to 46.7 billion dollars.
The interaction between artificial intelligence and cloud
Artificial intelligence and cloud are mutual enhancement. Microsoft enhances Openai to pay COPILOT accreditation, increase use via Microsoft 365, and create different cloud services, while the Azure scale and its reliability ensure that Microsoft can meet both the needs of traditional institutions and specialized AI’s tasks.
However, despite the addresses about artificial intelligence, the financial contribution of Azure is still much greater. The cloud growth of the company leads to the total microsoft results, so that the features that Copilot and AI operate attract new institutions and increase the average value of the seat.
Why Microsoft is an arrow it owns, not trade
Microsoft profit distribution payments
- Profit
- 0.70 %
- Annual profit distributions
- $ 3.64
- Record of profit distributions
- 23 years old
- The percentage of profit distribution
- 26.69 %
- Pay the following profits
- December 11
Date of MSFT profit distribution
The company with more than $ 3 trillion should not have a return on profits, and Microsoft is not disappointed. But do not let the return 0.55 % reject the value of the shareholders.
Microsoft paid 23 consecutive profits, paying $ 3.32 per share annually, and has a sustainable payment rate slightly more than 24 %.
The company also provides shareholders’ rights with a A large replay programIncluding $ 3.2 billion in the last quarter.
However, it is important to note that Microsoft does this with the continued generation of strong free cash flow (FCF) and honoring billions that plan to spend on the growth of the data center in the coming years.
“The free cash flow was $ 25.6 billion, an increase of 10 % on an annual basis, reflecting higher capital expenses to support our cloud and AI offers,” the company’s latest profit offer.
This means that Microsoft generates FCF from two numbers while continuing to invest intense in its future growth. This is an attractive preparation for each of the growth and income investors.
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