10:59 AM EDT, 07/21/2025 (MT Newswires) -- Microsoft's ( MSFT ) Azure demand remained "stable," with GPU availability improving in June across East and Central regions, RBC Capital Markets said.

Following channel checks with seven Microsoft ( MSFT ) partners, including systems integrators, cloud consultants, and enterprise-focused resellers, the brokerage said in a note Sunday that Copilot usage is mostly confined to legal, finance, human resources, and marketing departments, with few customers deploying the tool enterprise-wide.

Broader adoption is being paced by internal readiness, including compliance and training requirements.

RBC said that most partners flagged structural changes in their Azure contracts tied to artificial intelligence-related workload uncertainty, with 3 year commitments being replaced with 18 to 24 month terms, with quarterly check-ins or phased spending related to Copilot activation.

The firm added that despite the public speculation of strategic differences, partners reported "continued alignment" between Microsoft ( MSFT ) and OpenAI, with joint meetings, messaging and delivery posture remaining consistent.

The firm has a outperform rating on the stock with a $525 price target.

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