Ackman built a $2B+ new MSFT position in Q1 2026 — now ~15% of Pershing Square. $37B AI revenue run rate (+123% YoY), Azure growth 40% (2nd fastest hyperscaler), $627B commercial RPOs backlog. Stock at $400 is down 28% from $555 ATH — market treating Microsoft as 'yesterday's story' while AI revenue machine is compounding faster than any software business in history. Wells Fargo $650 PT, consensus $561 (+40%). 24x forward P/E vs 5yr avg 30x+.
Narrative: Jul 21 primary announcement plus Reuters corroboration: Microsoft made a multibillion-dollar commitment to use Mistral's expanded Europe-based GPU infrastructure, which is being built with thousands of NVIDIA Vera Rubin GPUs. Mistral Medium 3.5 and OCR 4 are now in Microsoft Foundry and Medium 3.5 is in Copilot Studio; the joint offer supports Azure cloud, Azure Local and fully disconnected r
Next catalyst: Q4 FY2026 earnings (Jul) — Azure growth, AI-capex/return commentary and whether management quantifies Sovereign Cloud or Mistral demand; then Mistral/Microsoft customer deployments and Ackman Q2 13F confirmation
Max entry: 405.0 · Entry limit: 385.0 · Profit target: 25.0 · Timeframe: months