2023 has proven to be a solid year in terms of stock market performance for Microsoft (NASDAQ: MSFT).
Amidst a broader resurgence in the technology market, largely driven by the current fervor surrounding generative artificial intelligence (AI) tools, such as the revolutionary ChatGPT, Microsoft made substantial strides.
The tech titan committed billions of dollars to propel the capabilities of OpenAI’s ChatGPT, and seamlessly integrated generative AI features into its cornerstone offerings, including Microsoft Azure and the Bing search engine.
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Microsoft completes Activision deal, set to unveil Q3 earnings
More recently, Microsoft achieved a significant milestone by finalizing the high-profile acquisition of video gaming behemoth Activision-Blizzard, a deal that had weathered regulatory scrutiny for nearly two years.
Meanwhile, the tech giant is also set to unveil its Q3 earnings on Tuesday, October 24. As such, investors are keeping a keen eye on whether Microsoft can maintain its impressive streak of four consecutive quarters of surpassing market expectations.
In the wake of these significant developments, Finbold delves into Wall Street’s forecasts for MSFT stock, offering valuable insights into what lies ahead for the company in the dynamic stock market landscape over the coming year.
Wall Street’s projections for MSFT
The consensus 12-month price target for MSFT shares currently stands at $398.28, based on 36 Wall Street analysts who covered the stock in the last 3 months. That price objective is nearly 22% higher than MSFT’s present stock price.
Furthermore, the tech giant’s stock is rated as ‘Strong Buy’ on TipRanks, on the basis of 32 ‘Buy’ and 4 ‘Hold’ ratings given by analysts in the previous three months.
Is MSFT a buy?
As evident from the above analysis, Wall Street is largely bullish on MSFT’s stock market performance over the next 12 months.
The company’s shares printed an all-time high of over $358 in July before seeing a 9% pullback in the following period.
In the last month, MSFT has been trading in a significant range of $309.45 to $336.68, and is currently standing near its upper end. On the upside, the stock is facing a resistance zone ranging from $330.23 to $330.94. Meanwhile, the support area is located between $322.37 and $326.04.
In addition to sound fundamentals, the future also looks bright for Microsoft, with two key areas to watch being its cloud segment and AI endeavors. The tech giant is devoting 13% of capital expenditures to AI in 2023, the most among the biggest cloud service providers.
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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.
