BNP Paribas Lifts Microsoft Target as AI Compute Demand Surges

BNP Paribas raised its Microsoft price target to $555, citing explosive AI compute demand and constrained GPU supply following Anthropic's $15 billion annual Colossus commitment. The bullish note contrasts with earlier cautions: George Noble flagged the AI trade as 'overcooked' on May 18 due to deteriorating hyperscaler cash flows, while Morgan Stanley warned on May 20 that Q1 software earnings are unlikely to drive a broad SaaS re-rating at compressed 2.6x EV/NTM sales multiples. Investors now see Microsoft and Oracle positioned to capture higher GPU rental pricing, with any meaningful AI catalyst expected in the second half.