The analyst, who has an outperform rating and $600 stock price target on MSFT, said his thesis remained that cloud and AI monetization is going to comprise a bigger and bigger piece of Microsoft going forward and will ultimately spur growth and margins over the coming years.

Needham raised its price target on Nvidia's (NVDA) stock to $200 from $160 after the company announced that it hopes to resume sales of its H20 chips to China.

Nvidia is poised to take advantage of growing demand for sovereign artificial intelligence, Citi analysts wrote Monday.