UBS said Microsoft's recent share pullback has already priced in some risk ahead
of the fiscal fourth-quarter print, leaving downside relatively limited. The
bank retains a Buy rating but trims its PT to $480 from $510, citing the risk
Microsoft may raise its capex outlook while merely maintaining — not upping —
Azure growth guidance. UBS warned that higher spending coupled with limited
revenue growth would be poorly received by markets. The note also flagged
Microsoft’s exposure to OpenAI, substitution risk from open‑source models, and
renewed scrutiny of its core productivity software business. UBS said it
maintains Buy but will take a more balanced view of this report.
