Microsoft stock has crashed into a technical bear market after plunging from $550 to the current $372. This retreat has coincided with the ongoing sell-off in software stocks and as concerns about its massive capital expenditure continues.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) currently trades at $372.29, while the average analyst price target sits at $587.31, a gap of roughly 58% between where the stock is and where Wall Street thinks it belongs.
Microsoft is trading at historically compressed forward P/E multiples despite above-average growth and a robust long-term outlook. I see a significant margin of safety and am upgrading MSFT to a strong buy, citing a wide moat and compounding potential. Cloud and AI remain powerful secular drivers, with infrastructure investments positioning MSFT for durable multi-decade demand despite OpenAI-related uncertainties.
Anthropic, the artificial intelligence company backed by Google, Amazon, and Microsoft, has crossed $30 billion in annualized revenue, outpacing OpenAI for the first time, according to Jefferies analysts. The surge comes after Anthropic added roughly $21 billion in net new annualized revenue in just three months, more than one-third of the $58 billion added by Jefferies' entire public software coverage (excluding Microsoft) in all of 2025.
Microsoft (MSFT) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Microsoft deepens its AI push with three in-house models, boosting speed, voice realism and image generation as it ramps enterprise monetization.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
VivoPower PLC (NASDAQ:VIVO, FRA:51J) announced it has appointed artificial intelligence strategist Khadija Mustafa to its advisory council, as the company looks to expand its global footprint in AI-focused infrastructure. Mustafa brings more than two decades of experience in global technology leadership, with expertise spanning artificial intelligence strategy, international partnerships and commercialization across markets including the US, the Middle East and Europe.
Azure growth is slowing, while CapEx spending is ticking up. On top of that, margins and earnings are under pressure. So why isn't this stock broken (yet)? In my view, as long as there is more demand for compute than supply, stocks like Microsoft remain highly attractive, despite the spending concerns. Precisely due to that reason, the 35% selloff since the October highs seems overdone.
On Monday, April 6, and Tuesday, April 7, Wall Street analysts reaffirmed their confidence in Microsoft (NASDAQ: MSFT) stock despite the blue-chip technology equity recently suffering its worst first quarter (Q1) of the XXI century.
Microsoft Corporation shares have experienced a significant 31% drawdown, marking one of their worst selloffs in recent memory. MSFT currently trades at 22x forward earnings and 20x next year's estimates, representing its lowest valuation in years. The bulls seem to take a major recovery for granted, ignoring the huge challenges Microsoft is facing.
“Interest cuts are just so critical” this year, says Chris McMahon, but high oil prices prevent them. He says Trump is playing a “sophisticated game of chess” with Iran and thinks the conflict won't be protracted.