MSFT Stock Alert: Moonshot Could Give Microsoft Another AI Revenue Stream

Microsoft (MSFT) stock has experienced a remarkable 2026, with shares rising sharply from their June low, though YTD growth remains modest at just 4%. Chinese AI startup Moonshot is currently in preliminary discussions with Microsoft, Amazon (AMZN), and Alphabet (GOOG)(GOOGL) Google concerning revenue-sharing deals for its Kimi K3 model.

Moonshot is seeking up to 30% of revenue generated by K3-related services hosted on cloud platforms. Options traders are optimistic about Marvell Technology stock potentially hitting $300, while Sandisk stock could nearly double to $3,000, according to Wall Street predictions. Nancy Pelosi recently acquired Intel stock, raising questions about future market moves.

The article, sourced from Barchart.com, highlights the significance of Moonshot's collaboration with Microsoft, emphasizing the potential benefits for Azure usage, cloud consumption, and recurring revenue. However, Moonshot must navigate U.S. scrutiny over intellectual property and chip acquisition concerns. Microsoft's current stock performance is relatively flat year-to-date but up 31.2% over the past six months, driven by Azure recovery and AI demand.

The company currently hosts over 11,000 AI models, with CEO Satya Nadella emphasizing the importance of the right model for each task. Microsoft's AI progress is evident in fiscal fourth-quarter 2026 results, with revenue up 18% year-over-year to $90 billion and net income increasing 31% to $35.8 billion. Azure and Intelligent Cloud revenues rose 43% and 32%, respectively, while productivity and business processes revenue grew 14% to $37.8 billion.

Microsoft now has over 30 million paid Microsoft 365 Copilot seats, and commercial remaining performance obligation has surged 84% to $678 billion. Analysts remain bullish on MSFT stock, with a Strong Buy consensus rating and a mean price target of $554.76, indicating a 7.86% upside from the current level.