Microsoft Stock Expected to Hit $600: Wedbush Securities Analysts

By Marco Piccolo

AI demand drives bullish outlook for Microsoft

Wedbush Securities has significantly raised its price target for Microsoft stock from $515 to $600, underscoring the firm’s growing conviction in the tech giant’s leadership in enterprise AI. In an analyst note led by Dan Ives, Wedbush described this period as Microsoft’s “shining moment,” citing a “massive adoption wave” for its AI-driven offerings such as Azure and Copilot, which is expected to reshape the company’s growth trajectory through fiscal 2026.

BREAKING: Wedbush raises Microsoft’s $MSFT price target to $600 from $515, maintaining an Outperform rating. The firm is bullish on AI-driven growth, highlighting Copilot and Azure monetization as key drivers. #Microsoft #AI

— TipRanks (@TipRanks) June 25, 2025

The bullish revision is grounded in accelerating customer demand and rapid enterprise deployment of AI solutions. According to Wedbush’s field research, Copilot and related AI tools are on track to reach over 70% of Microsoft’s installed base in the next three years. For every $100 companies spend on Azure, an additional $50 is now being allocated to AI layers, a jump from $40 previously. 

Microsoft’s capital expenditures reflect its aggressive AI ambitions, with $80 billion earmarked for fiscal 2025 to expand cloud infrastructure. Ives emphasized that Microsoft holds a “clear front runner” status in hyperscale enterprise AI, ahead of Amazon and Google, due to its robust enterprise relationships, integrated offerings, and faster monetization cycles.

Copilot, once considered a productivity tool, has evolved into a central enterprise AI asset, embedded across Microsoft’s product suite and rapidly gaining traction in sectors like government, finance, and retail. Wedbush expects fiscal 2026 to be a pivotal year, marking the shift from AI experimentation to broad-scale execution.

Wells Fargo also lifts price target

Wells Fargo joined the bullish sentiment, increasing its MSFT price target to $585 from $565. Despite Microsoft shares trading near all-time highs, Wells Fargo views the valuation as justified, pointing to the company’s “early AI lead and strong incumbent position in a tight market.”

The bank described Microsoft’s AI strategy as being in its “early days,” yet already showing strong signals of long-term growth potential, particularly through its entrenched position in cloud and enterprise software.

Microsoft stock performance and forecast

Microsoft shares have been on a steady climb, hitting record intraday highs of $494.56 and closing at $492.27 recently. The stock is up 7.7% over the last month and 3% in the past five days, reflecting growing investor confidence.

With a market cap of $3.69 trillion, Microsoft is currently the second most valuable publicly traded company, trailing only NVIDIA.

According to CoinCodex, the Microsoft stock forecast remains bullish. Analysts project that MSFT will continue its upward momentum throughout 2025, eventually peaking at around $635 in November. This outlook reinforces the consensus that Microsoft’s AI-driven transformation is far from priced in by the broader market.

Source:: Microsoft Stock Expected to Hit $600: Wedbush Securities Analysts