By Trefis Team
Publication Date: 2025-11-12 15:41:00
BEIJING, CHINA – NOVEMBER 11: The Microsoft logo is displayed on the company’s China headquarters building, which also serves as the headquarters of Microsoft’s Asia-Pacific R&D Group, on November 11, 2025, in Beijing, China. Microsoft Corporation (NASDAQ: MSFT), one of the world’s leading technology companies, conducts software development, cloud computing, and artificial intelligence research at this Beijing campus. (Photo by Cheng Xin/Getty Images)
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Microsoft stock (NASDAQ: MSFT) has surged by 20% this year, largely powered by robust Azure growth and the ongoing excitement surrounding the AI boom. However, following its rise past the $500 mark, a critical question emerges: Is the stock still a worthwhile purchase, or is a correction likely? Based on our analysis, we believe the stock is currently overvalued. Furthermore, considering its historical performance (as detailed in the subsequent sections), a significant 30% downside risk is not an unrealistic…