D.A. Davidson Maintains Buy Rating on Microsoft Amid Strong Cloud and AI Momentum

D.A. Davidson has maintained its Buy rating on Microsoft Corporation (MSFT), underscoring confidence in the company’s long-term trajectory despite broader market volatility. The firm points to Microsoft’s continued dominance in enterprise cloud services, with Azure revenue growing 24% year-over-year in the fiscal Q3 2025 report. This growth underscores the company’s ability to capture demand from hybrid and multi-cloud strategies across global enterprises. Microsoft’s Intelligent Cloud segment, which includes Azure, server products, and cloud services, generated $26.3 billion in revenue during the quarter—up from $21.2 billion in the same period last year. This segment now accounts for nearly 38% of the company’s total revenue, reflecting increasing reliance on scalable cloud solutions. The firm also notes that Microsoft’s AI-driven initiatives, particularly in integration with Office 365 and Dynamics 365, are accelerating customer adoption and driving higher average revenue per user. The firm projects Microsoft’s full-year 2025 revenue to reach $225 billion, with adjusted earnings per share of $10.30. These projections reflect strong execution in both cloud and AI product lines, supported by a growing ecosystem of third-party developers and enterprise partnerships. D.A. Davidson’s target price for MSFT stands at $440 per share, implying a 12% upside from current levels as of December 2025. Market participants, including institutional investors and technology sector ETFs, are taking note. Microsoft remains a top holding in major indices such as the S&P 500 and Nasdaq-100, with a market capitalization exceeding $3.1 trillion. The stock’s resilience and consistent dividend growth—now at $3.36 annually—further bolster its appeal in a high-rate environment.