[Morgan Stanley: Microsoft Dividend Increased by 8%, Target Price $600] According to Deep Tide TechFlow, citing Tide Research, Morgan Stanley's research report dated September 16, 2026, indicates that Microsoft has raised its quarterly dividend by 8%, maintained an overweight rating, and set a target price of $600. The current price is $497.12, with an upside potential of approximately 20.7%. Morgan Stanley expects Azure and other cloud services growth to accelerate from 40.7% in FY26 to 44.9% in FY27, while M365 commercial cloud growth is projected to rise from 16.4% to 16.6%. Under the base-case scenario, FY28 earnings per share are estimated at $24.06, with a price-to-earnings ratio of 25x. Morgan Stanley believes Microsoft's earnings growth and AI leadership have not been fully priced in yet. The decline in gross margin stems from increased AI capital expenditures, partially offset by operational leverage and efficiency improvements. The bull-case scenario target price is $795, while the bear-case scenario is $250. Morgan Stanley recommends monitoring Azure growth and Copilot monetization progress as key indicators for assessing whether valuation re-rating can be realized.