Microsoft stock (NASDAQ: MSFT) has declined nearly 22% year-to-date in 2026, falling over 9% in a single month and opening at $372 on a recent Wednesday. Despite this poor performance, three Wall Street firms—Daiwa Capital, Morgan Stanley, and Jefferies—have issued bullish predictions, with price targets ranging from $600 to $675. Their optimism is based on the strength of Microsoft’s cloud services, Azure, and its AI Copilot, suggesting a potential upside of more than 60% from current levels.
Microsoft Corporation’s stock is under significant pressure in 2026, with its value down nearly 22% since the start of the year. The stock has fallen more than 9% in just one month, positioning it as one of the least-performing technology equities.
However, Daiwa Capital has issued a buy rating with a $600 price target for the software giant. The firm’s analysis indicates the company’s cloud services can dominate the industry, with Azure generating $75 billion in revenue in 2025.
Morgan Stanley is also bullish, providing a higher price target of $650 for Microsoft stock. The investment bank cites strong growth in Azure, noting that quarterly revenues showed 39% growth as of early 2026.
Jefferies presents the most optimistic outlook, predicting Microsoft stock could reach $675. This forecast, like the others, is anchored in the perceived massive market potential for the company’s cloud services.
The collective bullish thesis from these three firms points to the core performance of Microsoft’s Cloud services, Azure, and AI Copilot. They see a potential uptick of more than 60% for MSFT, urging traders to consider buying while the price is low.
