In the latest trading session, Microsoft (MSFT) closed at $378.86, marking a -3.8% move from the previous day.
Microsoft is a Strong Buy, driven by April's renegotiation of its OpenAI arrangement, which caps liabilities and enhances free cash flow prospects. The revised OpenAI deal removes exclusivity and caps revenue share, allowing MSFT to redirect CapEx from short-lived GPU assets to higher-return investments. Q3 FY2026 showed robust fundamentals: 18% revenue growth, 23% GAAP EPS growth, and Azure up 40%, but CapEx guidance rose to $190B, pressuring free cash flow.
Amid the boom in artificial intelligence spending, one key factor has separated Meta Platforms NASDAQ: META from the other Magnificent Seven hyperscalers: cloud computing. Microsoft NASDAQ: MSFT, Amazon.com NASDAQ: AMZN, and Alphabet NASDAQ: GOOGL all have massive cloud computing businesses.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has underperformed in 2026, down 18.2% year to date even as the company posted a 123% YoY jump in AI run-rate revenue.
Recent OpenAI partnership changes improve Microsoft's gross margins, allow non-exclusive licensing, and enable Microsoft to develop proprietary AI models. Azure's growth outlook remains strong, even without OpenAI, due to MSFT's extensive data center expansion and leading number of AI models. An OpenAI IPO could add 61% upside to Microsoft's valuation, with Microsoft's OpenAI stake valued at $1.838 trillion present value.
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Microsoft TodayMSFTMicrosoft$387.76 -6.07 (-1.54%) As of 10:21 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$356.28▼$555.45Dividend Yield0.94%P/E Ratio23.07Price Target$561.20Add to WatchlistStrategic pivots rarely happen without a massive catalyst forcing the issue.
Entering Monday, shares of Microsoft (MSFT) were off 17.44% year-to-date, a stark, discouraging performance relative to some other megacap technology and artificial intelligence (AI)-adjacent names. However, there may be a silver lining for opportunistic traders.
Microsoft is changing how it charges for its software for the first time in two decades, moving to bill customers with a pay-as-you-go model each time they use its new AI agent.
Investors who prioritize stability and AI-driven growth may prefer buying Microsoft stock on the dip, while those seeking a potentially undervalued software leader could find Adobe particularly attractive at current levels.
Microsoft wanted to lease Oracle's cloud, sources say. The deal could have been worth more than $3 billion.
SpaceX soared past Amazon's $2.66 trillion market capitalization on Tuesday as its momentum continued in the wake of its record-setting IPO on the Nasdaq last week.