Microsoft (MSFT) is cementing its AI leadership with Azure acceleration and capital expenditure guide after its Q3 results beat all key metrics, Wedbush said in a note Thursday.

"This was another standout quarter," the report said, pointing to triple-digit AI annual recurring revenue growth and accelerating Azure trajectory into the end of FY26.

The note also said any knee-jerk reactions to the elevated

capex framework represent "strong" buying opportunities.

The company guided Q4 capex to over $40 billion, well above the $31.9 billion in Q3, and provided a CY26 capex framework of about $190 billion as it plans to double its global data center footprint within two years to meet demand, the report said.

Wedbush kept its outperform rating and $575 price target.

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