By John Ballard
Publication Date: 2026-04-07 20:45:00
The share price of Microsoft (MSFT +0.48%) is down 23% year to date. The sell-off appears to stem from concerns about growing artificial intelligence (AI) infrastructure spending and broader uncertainty across the software industry around the rise of AI agents and their impact on Microsoft’s business.
However, most Wall Street analysts are not convinced that Microsoft is losing its competitive edge. The average rating is still a buy, with an average price target of $587, implying over 50% upside. Against that backdrop, here’s what analysts think the market may be missing.
Image source: Getty Images.
Microsoft is enjoying momentum in key areas
The analysts who have weighed in recently with positive takes are pointing to the same opportunities for Microsoft, which center on its Azure enterprise-grade cloud platform and demand for AI features integrated across the company’s Office software (Microsoft 365). Jefferies analyst Brent Thill recently reiterated a buy rating on the stock…
