Analyst Gil Luria downgraded Microsoft's stock to Neutral due to intensified AI competition.

Analyst Gil Luria of DA Davidson downgraded Microsoft's stock from Buy to Neutral, citing intensified AI competition that undermines its premium valuation. He maintains a $475 price target, ranking Microsoft fourth among major tech companies. While Microsoft has experienced revenue growth, its lead in cloud and AI is shrinking, raising concerns about margin pressures and reliance on Nvidia. Despite this, the company is exploring new growth avenues in AI and cloud services.

September 23, 2024
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