This week Morgan Stanley analysts began a bullish call on Microsoft stock. They labeled the stock “overweight” and kept a $650 price target, implying nearly 38% upside.
Shares have fallen about 4% since January 1, but analysts expect the pullback to be short‑lived. They forecast a nine‑basis‑point rise to 3.8% in software spending year‑over‑year.
CIOs project about 7.3% growth for Microsoft in 2026. The company plans a 237‑acre data center in Lowell Township, Michigan to support its AI work.
News of the Michigan site briefly pushed the stock higher before energy‑cost concerns erased gains. Microsoft now trades near the middle of its 52‑week range and below its 200‑day simple moving average.
Wedbush analyst Dan Ives called Microsoft a “core winner” for 2026. He said Azure could move from pilots to broader enterprise deployments as CIO budgets shift.
Julian Emanuel of Evercore ISI added a cautionary note but said systemic AI risks appear limited by healthy hyperscaler balance sheets.
