TD Cowen Reiterates Buy on Microsoft, $540 Price Target

TD Cowen analyst Derrick Wood reiterated a Buy rating and $540.00 price target on Microsoft (NASDAQ: MSFT).

“Build ’26: Launches New In-House Models, Easing Its Reliance On Frontier Labs; The Build conference marked a leap forward for MSFT and its positioning around AI models, AI stack layers, DIY apps, custom silicon & more.

There were an enormous amount of updates, incl. 7 new self-built models focused on fine-tuning & cost optimization.

This explains why GPU capacity was being drawn into internal R&D in recent qtrs, and now MSFT enters a new plane w/ its AI portfolio ambitions.

Build ’26 reinforced our view that MSFT sits in a strong position for addressing the broader AI complex. Reiterate Buy.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.