Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks Making Waves on Wall Street. On July 23, UBS analyst Karl Keirstead adjusted the price target for the stock from $500 to $600 while maintaining a “Buy” recommendation. The rating affirmation comes ahead of Microsoft’s upcoming fiscal fourth-quarter report due next week.
According to the firm, there are two factors driving company shares on the earnings reports, namely Azure growth and earnings revisions, which look positive. Microsoft enterprise customers seem satisfied as opposed to earlier in the year.
It believes Azure cloud service growth has the potential to exceed the high end of Microsoft’s guidance range of 35%. Meanwhile, recent headcount reductions may positively impact the fiscal year 2026 margin outlook.
A computer engineer discussing the company’s Unified Cloud Software Solutions with a colleague.
The firm believes that investors expect around constant currency Azure growth of 36% for the June quarter, with guidance pointing to a slowdown to 34% in the September quarter. The growth target seems achievable due to improving sentiment from enterprise customers and partners as compared to the February-April period.
Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.
While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
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