Morgan Stanley maintained an "overweight" rating on Microsoft. The firm set a price target of $650 per share.
Analysts project a nearly 38% upside. This growth is driven by anticipated increases in global software spending. Continued corporate adoption of Microsoft's Azure and AI platforms also drives the outlook.
Wedbush analyst Dan Ives echoed this sentiment. Ives highlighted strong momentum in AI and cloud services ahead of the next earnings report.
Microsoft shares dipped approximately 4% since January 2026. Analysts expect this trend to be short-lived.
Massive investments in AI are primary growth drivers for the year. The transition of Azure services from pilot programs to full-scale enterprise deployments also drives growth. Market watchers maintain a bullish long-term view.