Morgan Stanley has issued a new coverage of Microsoft (NASDAQ: MSFT) with an ‘Overweight’ rating and a $600 price target for the stock. 

The new price target implies roughly 50% upside from the technology giant’s share price of about $400 at press time.

The new coverage reflects growing confidence that Microsoft’s artificial intelligence investments are entering a phase of stronger monetization through Azure cloud services and Copilot AI products.

The bullish call comes as Wall Street remains largely positive on Microsoft despite heightened scrutiny around AI spending and data center investments.

According to analyst Adam Wood, Azure and Copilot represent key inflection points that could drive durable earnings…