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

Microsoft Corporation (NASDAQ:MSFT) is pursuing quantum computing as a core long‑term pillar of its Azure cloud platform. The company is developing topological qubits based on Majorana physics, which are aimed at fault‑tolerant quantum computers with up to a million logical qubits on a single chip. The company also 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 rating and a $460 price target by RBC Capital. The rating comes after the amended agreement between OpenAI and Microsoft. As per this new deal, Microsoft remains OpenAI’s primary cloud partner, with OpenAI products continuing to launch first on Azure. However, OpenAI now has the freedom to serve its products across any cloud provider, not just Microsoft’s platform. Moreover, the company also retains access to OpenAI’s intellectual property for models and products till 2032. However, the license has changed from exclusive to non-exclusive.

​As per the new agreement, Microsoft will also stop paying a revenue share to OpenAI, while OpenAI’s revenue share payments to Microsoft will continue through 2030 at the same percentage but with a total cap. The company also continues to hold a stake in OpenAI as a major shareholder.

​RBC Capital noted that this new deal can reduce the company’s dependence on OpenAI as it moves towards a multi-modal approach. Overall, the Street is bullish on MSFT, with 95% of the 61 analysts covering the stock maintaining a Buy rating. The 12-month average price target suggests more than 33% upside from the current level.

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