In a note covering infrastructure and AI Software, Cantor Fitzgerald analyst Thomas Blakey raised the price targets for: Microsoft Corp (NASDAQ:MSFT) – from $522 to $608, while maintaining an Overweight rating. ServiceNow Inc (NYSE:NOW) – from $141 to $174, while reiterating an Overweight rating.
7%, analyst Blakey noted. Check out other analyst stock ratings.
Microsoft: The analyst highlighted the following initiatives: Partnered with Marvell Technology Inc (NASDAQ:MRVL) and privately-held Utimaco to launch Azure Payment HSM v2, a managed cloud payment-security platform. Published a provisional AI Code of Conduct setting model behavior standards, emphasizing human autonomy, and warning against user dependency or sycophancy.
Microsoft recently reorganized its business segments, shifting slower-growth industry solutions like Healthcare out of Azure and moving higher-growth businesses, such as GitHub Cloud and Security, into Microsoft 365 Cloud, Blakey said. Azure’s underlying growth is accelerating, supported by faster capacity rollouts and hardware/software efficiency gains, the analyst stated.
Despite operational improvements, overall demand continues to outpace available infrastructure capacity, he further noted. ServiceNow: "We expect the uptick in agentic AI to drive modernizations and security demand higher, favoring infrastructure and security software in general and specifically platform plays in our coverage," Blakey wrote.
Investor sentiment on ServiceNow has turned positive, driven by strong AI-driven tier upgrades and growing demand for security-focused agentic platforms, the analyst stated. 5%) and strong US Federal performance position the company well to meet its expanding AI targets, he added.
45 at the time of publication on Monday.
