Satya Nadella of Microsoft introduced a “red code” for Copilot

Microsoft May Exit the Downturn: Key Growth Drivers

*Benzinga* reports that Microsoft shares, which have been experiencing a prolonged slump, could turn back to growth. This is linked to several new initiatives and positive results from the company.

1. Strengthening AI Efforts
- Copilot: After investors expected a “mind‑blowing” success from the AI assistant, the actual response was less striking.
- Management Decision: CEO Satya Nadella announced an “emergency mobilization” of resources and launched a major Copilot upgrade program.
- The new version (E7) will be released on May 1.
- New features are planned over the course of the year.
- Early reviews are positive, and competition with Anthropic could spur further product improvement.

2. Strong Azure Cloud Performance
- In the last quarter, Microsoft allocated 30 % of Azure resources to its own projects (Copilot and internal AI models).
- This raised concerns that the company might compete with partners such as OpenAI.
- However, an analyst believes that even with the share increasing to 50 %, demand for AI services and high computing capacity will allow Azure to exceed revenue expectations.

3. Optimizing the Financial Model
- Microsoft is working on improving capital expenditures, free cash flow, and growth rates.
- The proportion of free funds in revenue stands at 20 % – already a good figure.
- Combined with Copilot and Azure growth, shares could return to the “green” zone.

Conclusion
Microsoft is taking decisive steps: updating its key AI product, strengthening its cloud platform, and optimizing financial metrics. These factors provide grounds for expecting a recovery in the company’s share price.