Key Takeaways:
- Microsoft (MSFT, Financial) adjusts its AI cloud strategy amidst economic challenges.
- Analysts maintain a positive outlook with significant potential upside.
- GuruFocus metrics suggest undervaluation, indicating investment opportunities.
Microsoft (MSFT) is strategically pivoting its approach to AI infrastructure expansion. In response to broader economic headwinds, the tech leader is scaling back over two gigawatts of its AI cloud capacity, shifting its strategy from aggressive growth to more targeted investments. Despite these adjustments, Microsoft's stock demonstrates resilience, with a smaller annual decline compared to industry counterparts.
Wall Street Analysts Forecast
According to insights from 49 Wall Street analysts, Microsoft Corp (MSFT, Financial) holds an average price target of $492.36 over the next year. With projections spanning a high of $650.00 and a low of $423.00, this average target suggests a potential upside of 33.87% from its current share price of $367.78. Investors can access more detailed estimates on the Microsoft Corp (MSFT) Forecast page.
Compiled recommendations from 60 brokerage firms position Microsoft Corp (MSFT, Financial) with an average brokerage rating of 1.8, designating an "Outperform" status. This rating operates on a scale from 1 to 5, where 1 indicates a Strong Buy and 5 represents a Sell.
Further analysis using GuruFocus estimates places the projected GF Value for Microsoft Corp (MSFT, Financial) at $497.43 within a year, signifying a 35.25% upside from the current price of $367.78. The GF Value reflects GuruFocus' assessment of fair market value, derived from historical trading multiples, prior growth metrics, and future performance projections. Additional data can be explored on the Microsoft Corp (MSFT) Summary page.
