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Microsoft's AI-driven GPU savings boost margins; cloud margins steady and dividend hike sustainable.

Analyst Insights
29 Sep 2026
Seeking Alpha
View Source
Bullish
Microsoft's AI-driven GPU savings boost margins; cloud margins steady and dividend hike sustainable.

Microsoft Corporation continues to be a Strong Buy as its in-house AI models deliver up to 89% savings on GPU costs, helping maintain strong profit margins despite increased capital expenditures. The company’s cloud gross margin remained stable at 65% in the June quarter, and an 8% dividend increase is supported by free cash flow that covers payouts more than twice over. Additionally, the upcoming shift of Copilot to usage-based pricing for small businesses starting November 2 is expected to generate additional revenue and profit as adoption grows. While a $329 billion backlog of unstarted data center leases poses a long-term risk, current demand and cost efficiencies justify a positive outlook for Microsoft shareholders.

Microsoft shares trade at USD 510.82 on Pluang as of September 30, 2026, 02:41 WIB, showing a modest 0.31% gain for the day. Despite the article's focus on AI-driven cost savings and strong profit margins, Pluang users are almost evenly split with 51% selling and 49% buying, reflecting mixed sentiment. The stock remains near its 52-week high of USD 542.07, underscoring sustained investor interest in the tech giant amid evolving cloud and AI strategies.

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