Microsoft CAPEX Concerns Seen as Buying Opportunity

Bernstein analyst Mark Moerdler argues Microsoft’s high CAPEX will translate into revenue as timing lag resolves, not a fundamental issue.
He identifies five CAPEX allocation areas—first‑party apps, free Copilot, internal use, lower‑margin Azure, and offline capacity—deeming them constructive.
Moerdler expects Azure revenue growth to accelerate in Q3 and remain strong in Q4, supporting a bullish outlook.
He maintains an outperform rating with $641 price target, calling AI concerns overblown and valuation easy.