Microsoft added to Tactical Ideas List at Wells Fargo
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Microsoft (NASDAQ:MSFT) was added to Wells Fargo's Tactical Ideas List for the fourth quarter on Monday, due to enthusiasm for the tech giant's prowess in artificial intelligence and Azure cloud computing unit.
Analyst Michael Turrin, who has an overweight rating and $400 price target on Microsoft (MSFT), said there is a "favorable path" forming ahead of an improving rest of the year, with several key catalysts. 
The catalysts include the coming first-quarter earnings, which Turrin said is likely to be the low-point in growth, with potential for re-acceleration in the second-half of the year, due to improving trends in the PC market, stabilization in Azure and early AI adoption.
For Azure, Turrin said he is expecting growth to stabilize at 27% year-over-year, with the potential for upside due to easier comparisons and further contributions from AI.
"As the offerings mature and customers begin to initiate AI-related investment heading into calendar year-end, we expect contribution for Dec'23 to prove even greater than Sep'23," Turrin wrote in an investor note. "Given the ramping AI contributions, we're expecting AI services to increasingly drive a greater portion of growth and represent an upside catalyst for the Sep'23 print/Dec'23 guide."
Turrin also said next month's Ignite conference should see a number of "notable" announcements as it continues to increase its Copilot offerings, as well as other AI-related services.
Microsoft (MSFT) shares rose fractionally in pre-market trading on Monday.

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