Microsoft (NASDAQ) was downgraded by DA Davidson to Neutral from Buy, citing concerns over increasing AI competition from Amazon Web Services and Google Cloud. Analyst Gil Luria noted that Microsoft’s AI and cloud leadership has diminished, with rivals advancing in areas like custom silicon for data centers. Microsoft’s reliance on NVIDIA for AI hardware could strain margins, especially as its data center spending grows. Additionally, competitors like Amazon and GitLab are catching up to Microsoft’s GitHub Copilot. Despite these concerns, Wall Street analysts still maintain a Strong Buy rating.
