Microsoft and Oracle: J.P. Morgan Hikes One AI Stock's Price Target but Lowers the Other - Here's Why

J.P. Morgan lifted one price target and trimmed another for software and cloud infrastructure bellwethers Microsoft and Oracle, as Wall Street continues to weigh the heavy capital spending tied to AI build-outs. Both firms have faced pressure this year as investors judge whether the spending will translate into sufficient returns, with free cash flow affected. J.P. Morgan analyst Samik Chatterjee reiterated a bullish stance on Microsoft, expecting acceleration in Azure and Microsoft 365 Commercial Cloud, supported by AI infrastructure demand. The firm raised its Microsoft target from $550 to $625 (implied 26% upside) while keeping an Overweight rating. For Oracle, the article says Chatterjee sees “significant upside” tied to a faster ramp in AI infrastructure capacity, but details are cut off.