Grilandu, November 1st | Morgan Stanley's research report pointed out that the demand signal for Microsoft remains strong, with order growth reaching 23%, and remaining performance obligations (cRPO) increasing by 17% annually. However, supply constraints continue to limit the growth of generative AI-related businesses. Nevertheless, management is confident in capacity enhancement in the second half of the year, and Microsoft's forecasted pe ratio for 2026 is 25 times, so investors should expect to see patient waiting rewarded. The bank believes that there are several aspects worth noting, including Azure's guidance for the second quarter falling below expectations, revenue and earnings per share guidance for the quarter also lower than expected, increased losses in other income, and more capacity shifting from the second quarter to the second half of the year. The bank has raised its target price from $506 to $548, with a "shareholding" rating.