● Covered by 1 source · 1 reportMedium impact
Citi analysts predict strong Copilot growth, surprising Jim Cramer
Key points
- Citi projects strong momentum for Copilot and Azure cloud services.
- Estimates for Copilot adoption raised to 8M new users in fiscal 2026.
- Citi cuts Microsoft's stock price target to $570 from $620.
Citi's Positive Outlook on Copilot
Citi analysts recently issued a note supporting Microsoft's Copilot AI, predicting its adoption will accelerate leading into fiscal 2027. They highlighted notable improvements in customer feedback and a promising forecast for Copilot's contribution to Microsoft's overall growth, projected until fiscal 2030.
Jim Cramer's Reaction
Investor Jim Cramer expressed surprise at Citi's favorable stance on Copilot, contradicting numerous negative reports. He remarked that hearing about improved performance was unexpected, likening the situation to reading 'Alice in Wonderland'.
Stock Performance and Price Target Adjustment
Following Citi's report, Microsoft shares rose over 3%, although the stock remains down 18% year-to-date. In light of ongoing challenges in the enterprise software market, Citi also adjusted its price target for Microsoft to $570 from $620.
AI Concerns Impacting the Market
The AI sector has faced scrutiny, with stocks like Salesforce down 36% year-to-date due to fears of disruption. This trend was exemplified by IBM's recent software issues, which resulted in a significant stock drop.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
Reporting from
Citi analysts expressed optimism about Microsoft's Copilot AI, expecting increased adoption and revenue growth into fiscal 2027. This assessment diverges from the prevailing criticism surrounding Copilot, which has seen sluggish uptake and mixed feedback.