Microsoft (MSFT) has unveiled a new subscription service tailored for consumers eager to implement Hotpatch security fixes on their computers. Set to launch on July 1, this service will be priced at .50 per month for each CPU core and is exclusively available for Windows Server 2025 Standard or Datacenter. Additionally, users must maintain a connection to Azure Arc to utilize this service.
The Hotpatch service offers a significant advantage for server operators by enabling security updates without the necessity of rebooting. This innovation alleviates the traditional burden of rebooting servers every Tuesday when new security patches are rolled out. However, it is important to note that subscribers will still be required to perform reboots four times a year for baseline updates.
What This Means for Microsoft Stock
The introduction of the Hotpatch security subscription service represents a new revenue stream for Microsoft, coinciding with a surge in interest in server technology driven by the ongoing artificial intelligence (AI) boom. The AI server sector is poised for remarkable growth, with projections estimating it will reach 7.83 billion by 2030, reflecting a compound annual growth rate (CAGR) of 34.3% from 2024 to 2030. This anticipated expansion could further enhance revenue from Microsoft’s Hotpatch subscription service.
Investors are also keenly awaiting Microsoft’s upcoming earnings report, scheduled for release this Wednesday. Analysts forecast earnings per share of .22, alongside projected revenue of .43 billion.
Is MSFT Stock a Buy, Sell, or Hold?
On Wall Street, the consensus rating for Microsoft stands at Strong Buy, bolstered by 31 Buy ratings and four Hold ratings over the past three months. The average price target for MSFT is set at 4.86, suggesting a potential upside of 25.36% for the stock.
See more MSFT stock analyst ratings
