This article first appeared on GuruFocus.

Microsoft (NASDAQ:MSFT) drew fresh support from Bernstein on Monday, with the firm raising its price target to $660 from $647 and maintaining an Outperform rating.

The call challenges concerns that heavy AI infrastructure spending could leave the company with excess capacity.

Bernstein said Microsoft’s recent results provided some evidence against that concern. Its analysis indicates data center expansion has been growing at a slower pace than cloud revenue, while future lease commitments are distributed over several years.

The firm also pointed to Microsoft’s limited purchase commitments beyond the next 12 months, mainly covering power,…