PREVIEW: Microsoft dips; investors weigh hefty AI bill
** Shares of Microsoft Corp MSFT.O down >1.5% on Tues ahead of the software heavyweight's qtrly report after the bell, with investors focused on whether growth in cloud-computing business justifies the co's massive investments in AI
** Investors are closely watching capex growth related to AI buildout. In prev qtr, capex grew to $14 bln from $11.5 bln
** "We see many diverse ways that MSFT can monetize the explosion of generative AI (e.g., cloud, Copilot integration, OpenAI, Search expansion), driving considerable upside potential to our/Street consensus views looking ahead," CFRA analyst Angelo Zino wrote in a preview note on Jul 19
** Analysts on avg expect qtrly rev up 14.6% to $64.39 bln and adj EPS of $2.93 vs $2.69 yr-ago, per LSEG
** MSFT up 12% YTD vs Nasdaq's .IXIC 14% increase
** MSFT is ranked 3rd among S&P 500 stocks in terms of how highly recommended it is by analysts
** Its median PT is $497.50, which is roughly 18% above its current price of $419.50
Reporting by Noel Randewich
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