NFL’s Expanded AI Partnership Could Be a Game Changer for Microsoft (MSFT)

• On August 20, the National Football League announced a multiyear extension of its partnership with Microsoft, expanding the use of AI technologies like Copilot and Azure AI to enhance game-day decision-making, talent scouting, and stadium operations across all 32 clubs.
• This collaboration highlights Microsoft’s ability to provide AI-driven enterprise solutions at scale, illustrating real-world adoption of its cloud and AI platforms in one of the world’s most prominent sports leagues.
• We’ll explore how the NFL’s wide-ranging adoption of Copilot and Azure AI may alter Microsoft’s long-term growth narrative across enterprise AI.

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Microsoft Investment Narrative Recap

Owning Microsoft today is about believing in the company’s ability to translate its rapid AI and cloud expansion into durable revenue and profit growth, despite ongoing margin pressures and large capital needs. The recent NFL partnership extension showcases real-world adoption for Microsoft’s AI offerings but does not materially change the near-term risk: that outsized CapEx and flat margin outlook could pressure results if AI adoption stalls or key customers shift strategy.

Among recent announcements, Microsoft’s deal to supply 100,000 Copilot AI assistant licenses to Barclays stands out. Such high-profile enterprise wins support the key catalyst, enterprise AI adoption, which drives recurring cloud revenue and underpins confidence in Microsoft’s long-term growth initiatives across major sectors.

In contrast, investors should pay close attention to how growing capital demands for AI infrastructure could impact free cash flow and…

Read the full narrative on Microsoft (it's free!)

Microsoft's narrative projects $424.6 billion revenue and $157.5 billion earnings by 2028. This requires 14.7% yearly revenue growth and a $55.7 billion earnings increase from $101.8 billion.

Uncover how Microsoft's forecasts yield a $613.29 fair value, a 21% upside to its current price.

Exploring Other Perspectives

With 152 fair value estimates from the Simply Wall St Community, Microsoft’s perceived value spans from US$335.64 to US$613.29 per share. As enterprise AI rollouts accelerate, the company’s heavy investment in infrastructure puts potential cash flow constraints in the spotlight for many market participants.

Explore 152 other fair value estimates on Microsoft - why the stock might be worth 34% less than the current price!

Build Your Own Microsoft Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Microsoft research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Microsoft research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Microsoft's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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