Analysts Remain Bullish on Microsoft Corporation (MSFT), Citing Strong AI and Cloud Momentum

Microsoft Corporation (NASDAQ:MSFT) is one of the 13 best Fortune 500 stocks to invest in now.

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As of October 22, 2025, the most recent analyst sentiment on Microsoft Corporation (NASDAQ:MSFT) remains broadly bullish, as analysts reflect on the company’s AI and cloud leadership despite short-term sentiment swings, ahead of its Q1 FY2026 results, which are expected to be announced on October 28.

The most recent commentary on Microsoft Corporation (NASDAQ:MSFT) came from UBS, which kept its “Buy” rating with a $650 target on October 22. UBS highlighted accelerating Azure growth trends, alongside an improving enterprise demand environment.

On the other hand, BofA cited Microsoft Corporation (NASDAQ:MSFT)’s healthy deal activity, which prompted its “Buy” rating and $640 price target on October 20, despite the shifting AI infrastructure momentum toward Oracle. The investment firm expects potential Q1 revenue upside to $77 billion and Azure growth of 39%, alongside durable AI demand and increasing compute investments.

On the same day, Cantor Fitzgerald also revisited Microsoft Corporation (NASDAQ:MSFT)’s stock, reiterating its “Overweight” rating, citing the company’s transition beyond Windows 10, which indicates new revenue opportunities through security and cloud services.

Together, these analyst commentaries reflect on Microsoft Corporation (NASDAQ:MSFT)’s positioning as a core AI and cloud beneficiary with resilient fundamentals and multiple growth catalysts.

Through platforms like Windows, Azure, and Microsoft 365, Microsoft Corporation (NASDAQ:MSFT) develops and supports software, cloud services, and devices globally, with an expanding focus on AI infrastructure and enterprise solutions.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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