Habib Ur Rehman
1 min read
In This Article:
Bernstein SocGen has raised its price target on Microsoft (NASDAQ: MSFT) to $540 from $520, and kept an Outperform rating for the stock a couple of weeks ago. Shares are trading at $477, near their 52-week high, with a market cap of $3.55 trillion.
The firm sees longer-term upside tied to Microsoft’s partnership with OpenAI. If OpenAI’s roadmap unfolds as projected, Azure stands to capture a sizable share of the resulting demand, particularly in cloud infrastructure. Bernstein believes this could materially boost Microsoft’s top line by 2029–2030.
Image by Tawanda Razika from Pixabay
To account for this, the analysts raised their revenue forecast for FY27 and increased earnings estimates for FY26 and FY27. They’ve also bumped Microsoft’s valuation multiple from 28.5x to 29.5x.
Most of the expected gains fall outside the near-term forecast window, but the analysts argue the long-range potential is strong enough to justify the upward adjustment. Azure’s position in the AI supply chain remains central to that view.
While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None.
