Prediction: Microsoft Just Became One of Big Tech’s Best Values

Prediction: Microsoft Just Became One of Big Tech’s Best Values

By Vandita Jadeja
Publication Date: 2026-05-19 11:52:00

Quick Read

  • Microsoft (MSFT) reported Q3 FY26 revenue of $82.89B (up 18.3% YoY) with EPS at $4.27 beating estimates, Azure growing 40%, and AI business reaching a $37B annual run rate up 123% YoY. Bill Ackman disclosed a multi-billion-dollar stake citing attractive valuation.

  • Microsoft trades at a 25x trailing multiple for a business growing earnings 23%, supported by a $627B contracted revenue backlog and potential margin expansion from GitHub Copilot’s shift to usage-based billing on June 1, 2026.

  • The analyst who called NVIDIA in 2010 just named his top 10 stocks and Microsoft wasn’t one of them. Get them here FREE.

Microsoft (NASDAQ:MSFT) trades at $421.92 after a rough start to 2026, down 11.26% year to date and 8.54% over the past 12 months. Our 24/7 Wall St. price target for Microsoft is $510, implying roughly 20.9% upside over the next 12 months. Our recommendation is buy, with a confidence level of 70%. The AI capex story still has more runway than the…