11:33 AM EDT, 04/10/2025 (MT Newswires) -- Microsoft ( MSFT ) estimates were lowered amid tariff uncertainty that will likely slow down many cloud and AI initiatives in the US, Wedbush said in a Thursday note.

Wedbush analysts, including Daniel Ives, said the tariff "game of poker" is adding a high level of near-term uncertainty to any company with supply chains/cost inputs around China.

"This has created real damage to the corporate spending mentality," the analysts said.

"We are cutting estimates for Microsoft's ( MSFT ) June and 2026 estimates and lowering our price target from $550 to $475," they added. Wedbush kept its outperform rating.

The report said unleashing tariff Armageddon was always a negotiation tactic for President Donald Trump.

"But the impacts and gamble to the real economy are a snowball that once it starts rolling downhill it cannot be just stopped," the analysts said.

"Investors will see that front and center during earnings season for tech kicking off in the next few weeks," they added.

Price: 378.81, Change: -11.68, Percent Change: -2.99