Here’s What RBC Capital Thinks About Microsoft (MSFT) After Amended Deal With OpenAI

1 hour ago 2

Talha Qureshi

Tue, May 5, 2026 astatine 5:10 AM CDT 2 min read

Microsoft Corporation (NASDAQ:MSFT) is pursuing quantum computing arsenic a halfway long‑term pillar of its Azure unreality platform. The institution is processing topological qubits based connected Majorana physics, which are aimed astatine fault‑tolerant quantum computers with up to a cardinal logical qubits connected a azygous chip. The institution besides ranks among the Best Quantum Computing Stocks to Buy and Hold for 10 Years.

On April 27, Microsoft Corporation (NASDAQ:MSFT) was reiterated with an Outperform standing and a $460 terms people by RBC Capital. The standing comes aft the amended statement betwixt OpenAI and Microsoft. As per this caller deal, Microsoft remains OpenAI’s superior unreality partner, with OpenAI products continuing to motorboat archetypal connected Azure. However, OpenAI present has the state to service its products crossed immoderate unreality provider, not conscionable Microsoft’s platform. Moreover, the institution besides retains entree to OpenAI’s intelligence spot for models and products till 2032. However, the licence has changed from exclusive to non-exclusive.

As per the caller agreement, Microsoft volition besides halt paying a gross stock to OpenAI, portion OpenAI’s gross stock payments to Microsoft volition proceed done 2030 astatine the aforesaid percent but with a full cap. The institution besides continues to clasp a involvement successful OpenAI arsenic a large shareholder.

RBC Capital noted that this caller woody tin trim the company’s dependence connected OpenAI arsenic it moves towards a multi-modal approach. Overall, the Street is bullish connected MSFT, with 95% of the 61 analysts covering the banal maintaining a Buy rating. The 12-month mean terms people suggests much than 33% upside from the existent level.

While we admit the imaginable of MSFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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