Why These Wall Street Analysts Think Microsoft Stock Is ‘Getting Back on Track

With artificial intelligence (AI) lifting a wide range of tech stocks over the past few years, Microsoft (MSFT) has somehow struggled to keep pace. The company’s longer-term stock performance has lagged the broader market, with its massive AI capital investments, constrained Azure growth, and intensifying competition across cloud computing weighing on investor sentiment. But the narrative may be starting to change.

Microsoft’s near-term performance is picking up, and some analysts believe the tech giant’s growth story is beginning to look more convincing. That optimism got a fresh boost Wednesday, when Stifel analyst Brad Reback upgraded Microsoft to “Buy” from “Hold,” saying it is increasingly confident that the company is “getting back on track.” And Stifel is putting more money behind that view, too. Reback raised his price target on MSFT stock to $575 from $530, reflecting greater confidence in the company’s growth outlook. So, what's exactly fueling Stifel’s bullish outlook for Microsoft stock? Let’s take a closer look.