As Microsoft Corp. (NASDAQ: MSFT) stock rebounded from a crucial multi-year support level over the past two weeks, Gil Luria, a Wall Street analyst at D.A. Davidson, reiterated bullish sentiment.
Luria maintained a ‘Buy’ rating for MSFT stock and kept his 12-month price target at $550, in a note to clients analyzed by Finbold on July 7. The new target implies a potential upside of approximately 42.21% from the current share price of $386.74.
In his research note, Luria highlighted Microsoft’s Copilot as a mature component for democratizing AI models. Looking ahead, the analyst identified deeper integration of open-source models as a critical next step to catalyze a MSFT stock bull rally.
The analyst acknowledged MSFT stock continues to face a competitive landscape, noting that NVIDIA Corp. (NASDAQ: NVDA) has shown strong interest in filling the open-source integration space, and that Meta Platforms Inc. (NASDAQ: META) could potentially re-enter the arena.
Despite these risks, Luria remains confident in MAFT stock positioning. Furthermore, he believes Chinese AI models are unlikely to gain significant traction in the American enterprise. The current geopolitical and bilateral dynamics between the United States and China could limit the mainstream adoption of Chinese AI models.
MSFT stock price forecast and outlook
Following Luria’s stance to maintain a bullish outlook on his MSFT share price forecast, the average target from 37 analysts surveyed by TipRanks over the last three months was $560,97 at the time of reporting.
Microsoft has received a strong buy rating from Wall Street analysts, as more S&P 100 index companies signal bullish sentiment. Year to date (YTD), the company’s stock has rebounded twice from its multi-year support level around $356.77 to trading at $386.74 at press time.
As part of the S&P 100 index, MSFT stock could attract more buyers amid the ongoing AI boom.
