Microsoft (MSFT)
Bank of America raised its price target to $600 from $500, a 20% jump, and kept a Buy rating. The move follows recent results that BofA says confirm the AI strategy is working. Cloud revenue and Azure grew 43%, showing strong demand for cloud and AI services. Azure growth is expected to speed up to 45% in the first quarter of fiscal 2027. Investors wanted proof that heavy AI spending turns into faster revenue growth, and BofA sees Microsoft well placed across the full AI chain - infrastructure, models, and applications. The higher target comes from a higher valuation multiple, tied to that cloud acceleration and returns on AI spending becoming clearer. BofA now has more confidence that high capital spending can produce lasting revenue growth. MSFT rose 4% in August as part of a return-to-software trade.
Akamai (AKAM)
Piper Sandler upgraded the stock to Overweight from Neutral, and shares rose more than 1%. The upgrade goes against broad market weakness at the start of the month. Year to date the stock is up nearly 30%, and up more than 40% year over year. The bull case centers on the compute business, with growth set to speed up after a string of customer wins. The company holds more than $2.8 billion in compute commitments, and Piper says existing capacity is essentially sold out, so more must be built to meet rising demand. That means heavier spending, and Piper raised its capex estimates to $2.3 billion in both 2027 and 2028. Despite the upgrade, Piper cut its price target to $125 from $140, still above the current price. The company has about 22 megawatts of active compute capacity, with demand running ahead of supply.
CrowdStrike (CRWD)
Truist raised its price target to $300 from $245 and kept a Buy rating, implying about 30% upside. Shares pulled back on the day amid market softness. Truist points to a record quarter and stronger fiscal 2027 expectations. The reported results: revenue up 26% year over year, annual recurring revenue (ARR) growing 25%, and record net new ARR of $332.8 million, a key gauge of newly won subscription business. Free cash flow reached $377 million. Truist wants proof that demand acceleration for Falcon is durable, not a short-term spike in security spending.
CrowdStrike has had a strong year, part of a broad move in cybersecurity stocks. It has a deal with Google and a deal with Clear, and its business keeps growing. A Jefferies call last Monday named CrowdStrike in the pole position; the stock was at $190 that day and now trades well over $200.
