The failed talks show how difficult it has become for even the largest tech companies to find enough AI computing capacity. Microsoft has been looking for extra cloud infrastructure because it wants to keep more Azure resources available for its own customers. As a result, the company recently projected that its 2026 capital expenditures will reach $190 billion, largely to expand data-center capacity. It has also already turned to Amazon (AMZN) for more capacity for its GitHub coding business after recent outages.
However, Oracle pushed back on the report by saying that the details were inaccurate, although it did not specify which parts. An Oracle executive said that adding FedRAMP to Oracle’s public cloud would require a major engineering effort. Microsoft is still exploring other cloud-leasing options, while Amazon and Google’s (GOOGL) public clouds already have FedRAMP.
What Is the Price Target for Microsoft?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 35 Buys and two Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average MSFT price target of $557.64 per share implies 41.7% upside potential.Disclaimer & DisclosureReport an Issue
