Vandita Jadeja
Fri, July 10, 2026 astatine 11:30 AM CDT 4 min read
Quick Read
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MSFT is down 19% successful 2026, yet bushed Q3 net estimates, grew Azure 40%, and carries a $500 BUY terms target.
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Microsoft's extended OpenAI concern done 2032 secured a $250 cardinal Azure committedness and IP rights, supporting the bull lawsuit to $600.
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Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Microsoft didn't marque the cut. Grab the names FREE today.
Microsoft (NASDAQ:MSFT) has spent the archetypal fractional of 2026 successful the punishment box. Shares are down 19.24% twelvemonth to date, weighed down by AI capex anxiety, Copilot execution questions, and a securities people enactment tied to the January net reaction. But fundamentals archer a antithetic story, and our exemplary sees a meaningful spread betwixt terms and value.
Our 24/7 Wall St. terms people for Microsoft is $500.25, implying 28.65% upside from $388.84. The proposal is bargain with 90% confidence.
24/7 Wall St. Price Target Summary
How MSFT Got Cheap Again
Microsoft entered 2026 adjacent $551.05 and has since traded down to a 52-week debased of $349.20. The one-year diminution sits astatine 21.25%, though the banal bounced 4.24% successful the past week.
Two factors measurement connected the stock. First, a securities fraud people enactment filed aft the January 28 net absorption alleges Microsoft misled investors connected Copilot adoption and Azure growth. Second, superior strength has exploded: CapEx of $30.88 cardinal successful Q3 FY26 was up 84.39% twelvemonth implicit year.
Operating results contradict the terms action. Q3 FY26 delivered EPS of $4.27 versus $4.09 expected connected gross of $82.89 cardinal (+18.3% YoY). Azure grew 40%, and CEO Satya Nadella noted "Our AI concern surpassed an yearly gross tally complaint of $37 billion, up 123% year-over-year."
Commercial remaining show obligations reached $627 billion, up 99%, a request awesome that dwarfs existent marketplace headdress concerns.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Microsoft didn't marque the cut. Grab the names FREE today.
The Case for $600+
Bulls person a straightforward path. Fifty-four of 57 analysts complaint Microsoft Buy oregon Strong Buy, with a statement people implying 46.2% upside.
Seeking Alpha's Gytis Zizys precocious upgraded to Buy, arguing "The existent 35% discount beneath just worth presents an charismatic semipermanent introduction point." Our bull lawsuit script models MSFT astatine $600.58 by July 2027, a 54.45% full return.
Catalysts are tangible. Azure's 40% maturation is accelerating, the OpenAI restructuring extended Microsoft's IP rights done 2032 and secured a $250 cardinal incremental Azure commitment, and Microsoft is present replacing OpenAI and Anthropic models with its ain MAI models successful Excel and Outlook, materially improving portion economics connected Copilot.

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