Microsoft’s (MSFT) AI Strategy Strengthens Its Long-Term Winning Position, Analyst Says
Microsoft Corporation (NASDAQ:MSFT) is one of AI Stocks on Market Radar. On January 5, Jefferies analyst Brent Thill reiterated a Buy rating on the stock with a price target of $675.00.
The firm believes investors should remain selective in software this year, recommending an underweight until AI monetization becomes more visible. Jefferies’ top mega-cap picks are Microsoft and Meta, as well as large-caps Intuit, Atlassian and Oracle.
Some of their key predictions for 2026 include strong AI tailwinds for Microsoft, a “widespread AI resurgence” at Meta, an AWS-led Amazon rebound, and a reacceleration at Oracle.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
Microsoft continues to demonstrate its strength in its various businesses, and has also expanded its artificial intelligence capabilities and integrated AI features into its portfolio. This is considered a significant growth driver for the stock.
Wall Street analysts currently have a consensus Buy rating on the stock. The average price target of $630 implies an upside of 33.23%, however, the high level target of $730 implies an upside of 54.38%.
Microsoft Corporation (NASDAQ: MSFT) provides AI-powered cloud, productivity, and enterprise solutions with a focus on efficiency, security, and advancements in AI.
While we recognize MSFT’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for a hugely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the reshoring trend, check out our free report on the best AI stock in the short term.
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Disclosure: None.
