By Rich Smith
Publication Date: 2026-01-23 18:05:00
Microsoft is a great company with an overpriced stock — and you shouldn’t buy it.
Microsoft (Nasdaq: MSFT) stock jumped 4.1% through 12:25 p.m. ET Friday after Karl Kierstead, an analyst at investment bank UBS, lowered his price target on the software giant — but insisted Microsoft stock is a buy anyway.
Kierstead puts Microsoft’s price target at $600, implying investors who buy today can expect a 28% profit in 12 months.
Image source: Getty Images.
Why UBS loves Microsoft
In a note covered on StreetInsider.com, Kierstead argues that the “continued ramp of the big Fairwater AI data centers in both Atlanta (which went live in October) and Wisconsin (going live in 1Q26)” are “key near-term catalysts for Microsoft Azure growth.” A UBS team recently visited the Wisconsin site and seems to have been sufficiently impressed by the progress there to raise its fiscal Q2 2026 revenue guidance.
The Intelligent Cloud business within which Azure resides is currently Microsoft’s…
