Rothschild & Co Redburn Downgrades Microsoft Corporation (MSFT) to Hold, Lowers PT

​Microsoft Corporation (NASDAQ:MSFT) is 1 of the Most Profitable Stocks to Buy Now. On November 18, Alexander Haissl from Rothschild & Co Redburn downgraded Microsoft Corporation (NASDAQ:MSFT) from Buy to Hold and besides reduced the terms people connected the banal from $560 to $500. On the aforesaid day, Gregg Moskowitz from Mizuho Securities besides downgraded the banal from Buy to Hold, without disclosing immoderate terms targets.

​Alexander Haissl from Rothschild & Co Redburn commented successful a probe enactment that the underlying economies of hyperscalers are acold weaker than anticipated, which suggests that it is clip to instrumentality a much cautious stance. He highlighted that the deployment of Graphics Processing Units needs astir six times the superior to make the aforesaid unreality 1.0 value, on with the associated downside risks.

​Haissl added that investors are giving excessively overmuch payment of the uncertainty to the hyperscalers. He noted the valuations of these companies are high, arsenic if they person already delivered unreality 1.0 level returns. In reality, the economies suggest nary wide way for instrumentality connected these investments. Therefore, the expert expects little net and higher superior expenditure for Microsoft Corporation (NASDAQ:MSFT) to prolong its growth.

​On the different hand, Microsoft Corporation (NASDAQ:MSFT) topped estimates during its fiscal Q1 2026 results, announced connected October 29. The institution grew its gross by 18.43% year-over-year to $77.67 billion, surpassing estimates by $2.28 billion. Moreover, the EPS of $4.13 besides came successful up of the anticipation by $0.47. Management attributed gross maturation to Microsoft Cloud revenue, which grew 26% to $49.1 billion, exceeding expectations. This was supported by Productivity and Business Processes revenue, which grew 17% year-over-year to $33 billion.

​​Microsoft Corporation (NASDAQ:MSFT) is simply a starring exertion institution known for a wide scope of devices, software, and services. Some of the halfway offerings by the institution see productivity software, including Microsoft Office and Azure, the Windows operating system, and gaming devices.

While we admit the imaginable of MSFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.