After hitting a new all-time high (ATH) and progressing further above the $450 price level, Microsoft (NASDAQ: MSFT) stock might proceed toward another record-breaking level – at $500 – and analysts are optimistic it will succeed in doing so in the next 12 months.
As it happens, Microsoft shares picked up the pace recently, reclaiming its status of the world’s most valuable company, despite the technology behemoth facing anti-competitive behavior charges from the European Union (EU) and revelations that Russian hackers have been spying on its clients’ emails.
Bullish Microsoft stock price prediction
Among the more optimistic analysts regarding the price of MSFT shares is Tyler Radke from Citi (NYSE: C), who has maintained a ‘buy’ rating for Microsoft stock and a price target of $520 (up from the previous $495), citing full confidence in its growth prospects thanks to its artificial intelligence (AI) ambitions.
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At the same time, he advises caution:
“While OpenAI headlines are a positive from a growth perspective [suggest strength in Azure], we conclude consensus models may be understating the losses that MSFT will incur from their OpenAI stake in the non-operating expense line.”
More recently, Goldman Sachs (NYSE: GS) analyst Kash Rangan, who rated MSFT stocks as a ‘buy,’ backed by a $515 price target, has argued that Microsoft will eventually yield “strong returns on its Gen-AI investments” and offer additional possibilities across other AI tech areas. As he added:
“We believe Microsoft’s current investment cycle underpins the same level of conviction in the promise of Gen-AI. Five quarters in, we see this playing out well as (based on our estimates) Microsoft’s AI-related CapEx [capital expenditures] buildout has a similar CapEx intensity (CapEx / Revenue) to Azure four/five years after its GA (launched in 2010).”
With the most recent updates, the Wall Street consensus places the Microsoft stock price target for the next 12 months at an average of $500.71, which suggests an increase of 10.41% to its current price, its lowest target at $450 and highest at $600, boasting a ‘strong buy’ rating.
Microsoft stock price analysis
For the time being, the price of MSFT shares stands at $453.52, down 0.32% on the day, up 0.87% across the week, gaining 5.95% in the past month, and adding up to the 22.60% increase on the year-to-date (YTD) chart, according to the most recent data on June 28.
Ultimately, finance experts agree that things are looking good for Microsoft stocks, but trends in the stock market do not necessarily remain steady, so doing one’s own research, understanding the risks, and keeping up with any relevant developments and news when investing is critical.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
