By Nauman Khan
Publication Date: 2026-01-23 17:24:00
This article first appeared on GuruFocus.
Microsoft (NASDAQ:MSFT) shares climbed about 3% after UBS said the company’s Fairwater AI data centers are likely to support stronger growth at its Azure cloud unit.
The Fairwater sites, which began coming online in 2025, are seen adding meaningful computing capacity through 2026, according to a UBS research note.
UBS analyst Karl Keirstead kept a Buy rating on the stock but trimmed his price target to $600 from $650. He said channel checks did not point to major delays in bringing the Wisconsin-based facilities online.
The analyst expects capacity to be activated in stages, measured in megawatts, a unit that reflects power available to run servers. UBS estimates about 100 megawatts could be online by late February, rising to roughly 400 megawatts by the end of June, with additional capacity later in the summer.
Based on that timeline, UBS lifted its constant-currency Azure growth…
