HSBC analysts initiated research coverage on Microsoft (NASDAQ:MSFT) with a Hold rating and a price target of $347.00. While recognizing Microsoft's strengths and its favorable position for AI benefits, the analysts highlighted concerns about the stock's high valuation.

Additionally, they expressed skepticism about the market's overly optimistic outlook on near-term AI monetization. The analysts stated that they anticipate strong short- and long-term operational performance driven by factors such as cloud computing, digital transformation, and the potential of AI.