As Microsoft Corp. (NASDAQ: MSFT) stock has regained a bullish outlook since late July 2026, Patrick Walravens, a Wall Street analyst at Citizens, expects another rally towards its all-time high (ATH) over the next 12 months.
Walravens reiterated a ‘market outperform’ rating for Microsoft stock, according to a note sent to clients on August 31. This analyst also maintained the firm’s 12-month price target for MSFT at $550.
With MSFT stock trading at $510.73 on Monday, Walravens signals a potential 7.69% upside. He set a cautiously positive sentiment for Microsoft due to revenue-sharing negotiations with Moonshot’s K3, a 2.8-trillion-parameter open-weight Artificial Intelligence (AI) model.
“China’s Moonshot in talks with Microsoft (MSFT, MO, $550 PT), Amazon, Google over K3 revenue sharing at levels up to 30%. This looks like the first serious attempt to price distribution. Negotiations following through would mean moving price towards frontier models,” Walravens noted.
Microsoft stock price target for 12 months
Following Citizens’ projected upside for Microsoft stock over the next twelve months, 34 Wall Street analysts surveyed by TipRanks have set an average price target of $564.49. As such, these analysts suggest a possible 10.55% rally, which could enable this stock to reach a new ATH.
The highest 12-month price target among these 34 analysts is $700, while the lowest is $450. Notably, Samik Chatterjee, an expert from JPMorgan Chase & Co. (NYSE: JPM), reaffirmed a Buy rating for this company and set a 12-month price target of $625.
MSFT price performance
Year-to-date, MSFT price has signaled bullish sentiment since mid-July 2026, driven by its strong fourth-quarter and full fiscal year 2026 earnings results amid a broader market rebound. As such, Microsoft stock has climbed 7.99% YTD, thereby pushing its market capitalization to $3.8 trillion at the time of writing.
As Microsoft approaches a key resistance level around its ATH, which was previously rejected twice over the past 12 months, these Wall Street analysts expect a positive exhaustion rally, fueled by rising AI expenditure by enterprise investors.
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