Microsoft Shares Climb to $422.35 as Analysts Raise Targets on AI Strength

Microsoft shares advanced 2% to $422.35 on May 7 amid strong analyst support, with Tigress hiking its target to $680 on Azure and AI momentum. Fiscal Q3 earnings on May 3 beat estimates at $82.9B revenue (+18% YoY), $4.27 EPS (+21%), 40% Azure growth, and $37B AI run rate (+123%), but shares dipped 5% initially on flat sequential RPO ($627B) and $190B 2026 capex crushing FCF to $15.8B (-22%). Coverage turned bullish from May 4-7, emphasizing 11 straight 30%+ Azure quarters, robust $46.7B cash flow (+26%), and ~21x P/E undervaluation despite temporary 68% gross margin dip.