Wall Street Recalibrates: Microsoft Upgraded, Amazon Bullish, Tesla Faces Board Pressure

In a week marked by significant shifts in sentiment and strategic pivots within the technology sector, leading Wall Street firms have updated their outlooks on some of the market's most influential companies. Microsoft, Amazon, Tesla, and Micron were central to new analyst reports, reflecting heightened focus on artificial intelligence, cloud computing growth, and leadership-related risks.

Microsoft: Oppenheimer Turns Bullish on AI & Cloud Momentum

Oppenheimer has upgraded Microsoft (NASDAQ:MSFT) to 'Outperform' and set a new price target of $600. This upgrade underscores increasing confidence in Microsoft's ability to monetize its artificial intelligence initiatives and the sustained strength of its Azure cloud platform.

Analysts highlighted Azure's growth trajectory as a primary valuation driver, akin to Amazon's AWS. While some AI-driven upside is already factored into the stock price, Oppenheimer anticipates a potential reacceleration in fiscal year 2026, which could lead to a further re-rating of the stock. Microsoft is characterized by a "Rule of 60" profile, indicating a rare combination of robust growth and high profitability at scale, justifying its premium valuation and long-term upside potential.

Amazon: Morgan Stanley Sees 34% Upside

Morgan Stanley has raised its price target for Amazon (NASDAQ:AMZN) to $300 from $250, citing improving momentum in Amazon Web Services (AWS) and a more favorable macroeconomic environment. This adjustment also reverses previous earnings per share (EPS) reductions that were tied to severe tariff scenarios.

A significant factor in this revised outlook is Amazon's strategic investment in Anthropic, which is projected to generate $10 billion in 2026 and $19 billion in 2027, thereby boosting AWS growth. Morgan Stanley believes Amazon is gaining tactical cloud market share from competitors like Microsoft, Google, and Oracle, reinforcing its status as a top pick.

Tesla: Wedbush Warns of Political Distraction Risk

Dan Ives of Wedbush has indicated that Tesla (NASDAQ:TSLA) is at a "tipping point," expressing concerns over CEO Elon Musk's increasing political engagements, including his reported intention to form a new political party.

Wedbush has urged Tesla's board to take several actions:

• Implement a new CEO-focused compensation structure.
• Establish clear frameworks for time commitment.
• Form a special oversight committee to monitor potential conflicts between political activities and executive leadership responsibilities.

Despite these distraction risks, Tesla is still considered one of the two leading physical AI companies globally, alongside Nvidia, with substantial upside potential in AI and autonomous driving, provided leadership remains focused.

Micron: Deutsche Bank Starts Coverage at Buy

Deutsche Bank has initiated coverage on Micron Technology (NASDAQ:MU) with a 'Buy' rating and a $150 price target. This positive outlook is driven by strong tailwinds in High Bandwidth Memory (HBM) and increasing demand from AI infrastructure.

Analysts are bullish on both the cyclical recovery and secular strength of Micron, particularly as next-generation AI processors increasingly rely on advancements in DRAM and NAND memory technologies.

Takeaway: Analyst Calls Reveal the Next Leg of Tech Leadership

From the widespread adoption of AI and intense cloud market share battles to critical discussions around leadership stability, this week's analyst calls signify a deeper recalibration of expectations for leading technology companies. These insights are crucial for understanding the evolving landscape of tech leadership and investment opportunities.