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Microsoft is negotiating to lease substantial data center capacity at the Stargate Project in Abilene, Texas, which is still under construction and spans 1,000 acres. This expansion follows Oracle's decision not to proceed with the opportunity.

Microsoft aims to enhance its Azure cloud services with this capacity. The company reports a revenue growth rate of 12.8% over the past three years, with trailing sales of $305.45 billion. Its operating margin is 46.67%, and it maintains a current ratio of 1.39 and a debt-to-equity ratio of 0.15.

Valuation metrics indicate potential undervaluation, with a P/E ratio of 25.29 and a P/S ratio of 9.89 near historical lows. Analyst sentiment is positive, with a target price of $596.93 and a