Bernstein increased the price target for Microsoft (NASDAQ:MSFT) from $342 to $380 per share, citing anticipated growth in Azure.

The analysts emphasize the significant market opportunity in the Software/Cloud/Internet sector, particularly in the hyperscale market, which is estimated to be worth over $1 trillion. They also highlighted Microsoft's management's expectation that AI services will contribute approximately 1% to Azure's incremental growth in the next quarter, considering this to be a substantial figure.

The analysts suggest that the demand for AI, particularly following the GPT announcements, will be a major driver for Azure, potentially surpassing Google as the leader in AI capabilities. They added that this trend could significantly contribute to Azure's long-term revenue growth.