According to the Fly, Bernstein said expectations for Microsoft’s upcoming quarter remain reasonable despite improved sentiment.
- Bernstein raised its Microsoft price target to $662 from $660 while maintaining an ‘Outperform’ rating.
- According to The Telegraph, Microsoft has pulled out of its agreement to rent 23,000 Nvidia AI chips at Nscale’s planned data center in Loughton, Essex, where it was expected to be the anchor tenant.
- According to Koyfin data, 53 of the 56 analysts covering Microsoft rate the stock ‘Buy’ or ‘Strong Buy’.
Microsoft (MSFT) shares drew investor attention on Monday after Bernstein raised its price target on the stock ahead of the company’s upcoming earnings report next week. According to The Fly, Bernstein raised its price target to $662 from $660 while maintaining an ‘Outperform’ rating on the shares.
MSFT shares traded 0.11% lower in premarket trading on Monday, at the time of writing.
Bernstein also noted that while sentiment has improved since last quarter, “expectations going into the quarter generally still seem reasonable.” The firm added that it “leans with a positive view into the Street’s reaction to the results,” according to The Fly.
Microsoft is expected to report its fiscal first-quarter (Q1) 2027 results after the closing bell on Oct. 28, 2026. According to Fiscal AI, analysts expect earnings of around $4.72 per share on revenue of approximately $90.4 billion.
According to Koyfin data, 53 of the 56 analysts covering Microsoft rate the stock either ‘Buy’ or ‘Strong Buy’.
Microsoft Reportedly Cancels UK Data Center Deal With Nscale
Separately, Microsoft has reportedly withdrawn from a planned data center deal with British AI infrastructure provider Nscale at a site in Loughton, Essex, according to a report published by The Telegraph on Sunday.
Microsoft recently informed Nscale that it was ending the agreement, which was announced last year, the report added.
The facility was expected to become Nscale’s first data center in the UK, with Microsoft serving as its anchor tenant. However, the project has faced repeated delays, with grid officials telling Nscale they do not expect a power supply until the 2030s. The site was originally intended to come online next year.
Microsoft had agreed to rent 23,000 Nvidia AI chips at the facility and was its only announced customer, according to The Telegraph report. The cancellation leaves the site in apparent limbo, as financing for the data center boom depends on long-term commitments from major AI companies to buy capacity.
More than 40% of Nscale’s $103 billion in contracted revenue comes from Microsoft, although the UK deal is believed to account for only a small portion of that total. Anthropic is another major customer, the report added.
How Retail Views MSFT
On Stocktwits, sentiment for MSFT remained in “Extremely Bearish” territory amid ‘high’ participation volumes.
MSFT shares have gained over 9% year-to-date.
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