Technology analyst Dan Ives expects big things from Microsoft’s (MSFT) stock in 2026.
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Ives, who is the lead technology analyst at Wedbush Securities, says Microsoft’s stock is likely to continue benefiting from the artificial-intelligence (AI) trade over the next year. Accordingly, Ives has reiterated a Buy-equivalent outperform rating and a $625 price target on MSFT stock.
Wedbush’s price target is 29% higher than where Microsoft’s stock currently trades. Ives says in a note to clients that Wall Street is underestimating Seattle-based Microsoft’s AI growth potential. At $485 per share, MSFT stock has risen 15% this year, underperforming the technology-laden Nasdaq Composite index’s 21% year-to-date gain.
Better Days Ahead for MSFT Stock
Ives expects Microsoft to prove its doubters wrong over the coming year and for 2026 to be an “inflection point” for the stock. Concerns about Microsoft’s AI capital expenditures are overblown, says the Wedbush analyst, adding that the company’s investments will be worth it in the long run.
“We view MSFT as the clear front-runner on the enterprise hyper-scale AI front,” writes Ives. The analyst sees Microsoft adding another $25 billion to its revenue by the end of fiscal 2026 through wider deployments of the company’s Azure cloud and Copilot AI platforms.
“In a nutshell we believe Microsoft is set to have a massive 2026 and the stock is a compelling buy at these levels,” concludes Ives.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 34 Wall Street analysts. That rating is based on 32 Buy and two Hold recommendations issued in the last three months. The average price target on MSFT stock of $631.36 implies 30.15% upside from current levels.
