Microsoft Corp. (MSFT): NDR Meetings: Enterprise shift to AI platforms is validating key strategic decisions from the last 3 years

We hosted investor meetings with Head of IR, Jonathan Neilson; and Director of IR, Danielle Criste; in Stockholm, Zurich and London the week of 9/14. Our sense is that Microsoft has made several key AI decisions in the last 3 years that are now paying off as enterprises evaluate the importance of platform offerings in AI, including a) front loading long-dated capex; b) balancing capex allocations between 1P applications and 3P customers; c) balancing capex allocations between frontier and enterprise customers, such that all of 4Q's $51bn RPO increase was from enterprises. Microsoft is leveraging its multi-decade incumbency into making AI work in enterprises, including its reputation for safety and governance, the ability to apply models to hill climb in enterprise environments, and the ramp of FDEs. We are Buy rated (on Conviction List) and believe the key areas of discovery value will center on improvements in MAIA and MAI, and momentum in enterprise platform go to market. We maintain