Microsoft (NASDAQ: MSFT), a dominant name in the technology world, has had a strong start in 2025, with its equity generally maintaining trading sessions in the green zone.
Although the stock is subject to headwinds affecting the broader market, the tech giant is focusing on key elements, particularly in the artificial intelligence (AI) space, to sustain growth.
Currently, MSFT is trading at $429.16, having gained over 3% on the weekly timeframe and 2.5% year-to-date.
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One of Microsoft’s key targets is $500, a milestone that will largely depend on the overall momentum of the technology sector and how well the company positions itself to compete with rivals in AI and cloud computing.
AI predicts MSFT stock price
To reach the $500 target, MSFT will need to clear key resistance levels in the short term. To this end, Finbold consulted its own artificial intelligence tool to forecast Microsoft’s stock price on February 1.
Insights from OpenAI’s GPT-4o, Claude 3 Opus, and Grok 2 Vision revealed varying predictions based on different methodologies, including trade signals, the simple moving average (SMA), and the relative strength index (RSI).
GPT-4o anticipates a price of $445, representing a 3.75% increase, citing recent positive momentum in the stock’s performance. Claude 3 Opus offered a more optimistic estimate of $488.75, forecasting a significant 13.95% rise due to strong upward momentum and favorable market indicators.
In contrast, Grok 2 Vision predicted a more conservative increase to $435, a 1.42% rise, attributed to technical stabilization and steady market conditions.
With Microsoft’s current price at $428, the average predicted value among the models is $456.25, reflecting a potential 6.37% increase.
Wall Street’s take on MSFT stock price
Meanwhile, a consensus of 28 Wall Street analysts on TipRanks suggests Microsoft is likely to rally by about 18% over the next 12 months to trade at an average price of $507, with a high target set at $550.
Among these analysts, Evercore ISI reaffirmed its ‘Outperform’ rating for Microsoft, setting a price target of $500. The firm highlighted the potential for Azure, Microsoft’s cloud computing service, to drive accelerated growth in the second half of the fiscal year.
They anticipate this momentum could redirect investor attention toward the company’s long-term revenue and earnings per share (EPS) growth prospects.
Similarly, Bernstein analyst Mark Moerdler raised Microsoft’s price target to $516 from $511 while maintaining an ‘Outperform’ rating. Moerdler noted that investor concerns over capital expenditures (CAPEX) and their revenue conversion are easing.
Bernstein further emphasized Microsoft’s investments in global capacity, primarily in facilities rather than computing, to meet the growing demand for inferencing.
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