Deutsche Bank is optimistic about Microsoft Build 2025: All-in agent-based AI will bring significant competitive advantages

According to Zhitong Finance APP, American tech giant Microsoft (MSFT.US) held the Build 2025 developer conference last week. In a recent research report, Deutsche Bank stated that Microsoft's comprehensive investment in agentic artificial intelligence will benefit the company. The bank maintains a "Buy" rating on Microsoft, with a target price of $475.

It is reported that Microsoft unveiled a comprehensive strategy at the Build 2025 developer conference, positioning it as the core of the "open agentic web." Microsoft launched over ten artificial intelligence (AI) tools and platforms, releasing more than 50 updates covering its entire product line, from GitHub, Azure to Windows and Microsoft 365, all focused on advancing AI agent technology that can independently or collaboratively solve complex business problems, helping developers create AI systems capable of making autonomous decisions and completing tasks with limited human intervention.

Microsoft's Chief Communications Officer Frank Shaw stated in a blog post, "We have entered the era of AI agents. Thanks to breakthroughs in reasoning and memory capabilities, AI models now possess stronger abilities and higher efficiency, and we are witnessing how AI systems can help humans solve problems in new ways."

Deutsche Bank's recent research report pointed out that, as expected, Microsoft fully invested in the vision of "agentic AI" at the Build 2025 developer conference, launching a large number of new products, features, and updates, showcasing the strength of a company that invests $30 billion annually in research and development.

Deutsche Bank noted that these releases mostly revolve around AI, particularly promoting the implementation of agentic AI capabilities across Microsoft's product portfolio. While no single event became a landmark, the overall message is clear—Microsoft is rapidly innovating and is committed to providing developers with the necessary tools to build and integrate agentic AI into their workflows, organizations, and products. Deutsche Bank added that Azure AI Foundry and Copilot Studio, highlighted in the keynote speech, are two flagship development platforms in Microsoft's AI ecosystem, helping developers bring agent applications from concept to reality.

In the report, Deutsche Bank stated that Microsoft CEO Satya Nadella compared the current moment to the "mid-stage" of the AI platform transformation, a period of preparation for large-scale expansion. Satya Nadella believes this means building an open agent network, transitioning from a model of a few vertically integrated applications to a paradigm based on platform goals. Microsoft clearly aims to establish a leadership position in this field, leveraging its extensive product coverage and large user base to provide horizontal solutions on multiple levels. Deutsche Bank emphasized that almost only Microsoft possesses this capability.

Deutsche Bank stated that Microsoft's vision is clear and resonates well. If humanity has indeed entered the era of production-level deployment of AI solutions, then a significant amount of challenging work will need to rely on the tools released at the Build 2025 developer conference, in conjunction with increasingly reliable and cost-effective AI technologies Deutsche Bank stated that the real test will be how Microsoft monetizes from infrastructure to higher-level PaaS and application software. For example, Microsoft's AI business achieved an annualized revenue of $13 billion in less than three years, primarily from Azure infrastructure services, while Copilot on platforms like GitHub, M365, Dynamics, and DAX is still in its early development stage.

Deutsche Bank believes that under the backdrop of ongoing significant investments and extensive experimentation, relevant use cases will gradually materialize. Even if more patience is needed in the short term, Microsoft remains one of the companies most capable of benefiting from this