+16% Upside: Analysts Raise Microsoft Stock Price Targets Amid AI Momentum

By Marco Piccolo

Analysts lift price targets on Microsoft as AI prospects intensify

Microsoft (MSFT) is seeing a wave of bullish sentiment from Wall Street analysts, with several firms recently raising their price targets on the stock amid growing optimism about its position in artificial intelligence and cloud computing.

Bernstein has increased its price target on Microsoft to $540 from $520, maintaining its Outperform rating. The firm underscores Microsoft’s deepening integration with OpenAI as a pivotal catalyst.

If OpenAI’s roadmap materializes as anticipated, analysts believe Microsoft’s Azure platform could capture a significant share of the associated demand, particularly in cloud infrastructure services. This projection led Bernstein to raise its revenue and earnings estimates for FY26 and FY27, alongside a modest bump in its valuation multiple from 28.5x to 29.5x.

Similarly, Wells Fargo lifted its MSFT price target to $565 from $515 on June 13, reiterating an “Overweight” rating. The firm emphasized that while investors should be selective in software during the summer, a stronger second half is expected due to easing macroeconomic concerns and seasonal factors. In Q3 2025, Microsoft’s cash flow from operations rose 16% to $37 billion, bolstered by robust cloud billings and collections.

$MSFT Microsoft price target raised to $565 from $515 at Wells Fargo – Overweight Rated pic.twitter.com/M8s061ayX9

— UPBOptionMil (@UPBOptionMil) June 13, 2025

Microsoft’s Intelligent Cloud segment is projected to deliver revenue between $28.75 billion and $29.05 billion in Q4 2025, a 20% to 22% year-over-year increase. Azure remains the primary growth engine, with expected revenue growth of 34% to 35% in constant currency, driven by high demand for its expanding service portfolio.

Despite a slight dip earlier in 2025, attributed to tempered AI monetization expectations and sector rotation, Microsoft stock has gained approximately 15% year-to-date. It recently closed at $486, near its all-time high, pushing its market capitalization to $3.55 trillion.

Wall Street consensus, according to Visible Alpha, puts the average price target at $531, suggesting a 9% upside from current levels. Wedbush analysts echoed Bernstein’s optimism, stating that Microsoft remains “in the driver’s seat” in the AI race.

MSFT price prediction points to $619 peak in 2025

CoinCodex’s proprietary algorithm remains bullish on MSFT, projecting continued gains in the months ahead. According to the platform, Microsoft stock could reach a local peak of $553 by late August 2025. The rally is forecast to continue toward a high of $619 by the end of 2025. However, the model also anticipates a subsequent correction in 2026, aligning with potential market normalization following the AI-driven surge.

With analysts and algorithmic models aligning on Microsoft’s growth trajectory—particularly around Azure and AI—investor focus will likely remain fixed on how effectively the tech giant capitalizes on its strategic positioning in these critical sectors.

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