What is Stifel's price target for Microsoft stock?

Stifel set a price target of $415 for Microsoft stock with a Hold rating.

Why does Microsoft need a long-term power agreement?

Microsoft needs reliable energy to power its growing AI data centers, which consume large amounts of electricity.

Microsoft Signs 20-Year Power Deal with Chevron for Data Centers

Microsoft (MSFT) has signed a 20-year power purchase agreement with Chevron (Project Kilby) to secure energy for its AI data centers. Stifel analyst Brad Reback reiterated a Hold rating on Microsoft stock with a $415 price target, noting the deal underscores rising power demand.

June 24, 2026

2 min read

Source: Insider Monkey

Key Numbers

price target

415.00

Microsoft Corporation (NASDAQ:MSFT) announced a 20-year power purchase agreement (PPA) with Chevron Corporation (NYSE:CVX) under Project Kilby, aimed at securing energy supply for its growing data center operations, particularly for AI workloads. The financial terms and capacity of the deal were not disclosed.

Deal Details

Project Kilby is a long-term PPA that will provide Microsoft with electricity from Chevron's power generation assets. The agreement highlights the increasing importance of energy procurement for tech giants expanding their cloud and AI infrastructure.

Context

The deal comes as major technology companies, including Microsoft, Amazon, and Google, race to secure reliable and clean energy sources for data centers. Analysts project that data center energy demand could double by 2030, driven by AI adoption.

What This Means for Investors

The agreement signals Microsoft's commitment to scaling its AI and cloud capabilities, which could support long-term revenue growth. However, long-term energy costs may pressure margins. Stifel's Hold rating and $415 price target reflect a balanced view of the stock's prospects.

Frequently Asked Questions

Project Kilby is a 20-year power purchase agreement between Microsoft and Chevron to supply electricity to Microsoft's data centers.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.