Microsoft Stock (MSFT) Gets a Price Target Hike from Top Analyst as It Goes ‘All In on AI’

Microsoft (MSFT) stock received a boost from Evercore ISI price target hike. Top analyst Kirk Materne of Evercore ISI lifted the price target on MSFT stock to $515 from $500 yesterday, while maintaining his Buy rating. The revised price target implies a 13.22% upside potential from current levels. Materne, who ranks 380 out of more than 9,558 analysts tracked by TipRanks, has a success rate of 64% and delivers an average return per rating of 11.60% over a one-year timeframe.

The price hike followed Evercore ISI’s recent Microsoft 360 event, which included discussions with Microsoft leaders and partners. Materne said he remains confident in Microsoft’s AI push, highlighting strong demand and the company’s clear focus on enterprise AI.

Why Materne Is Bullish on Microsoft

Materne sees Microsoft as just beginning to tap into the potential of enterprise AI. He believes the company is well placed to grow both through its software tools—like Copilot—and through its cloud platform, Azure. He also noted that Microsoft’s wide range of products is helping it reach new spending areas outside traditional IT, such as sales and supply chain operations.

He stressed that Microsoft is “all in on AI,” investing heavily to meet strong demand while also focusing on efficiency. Among Microsoft’s AI tools, GitHub Copilot and Copilot for Teams are gaining the most attention. Materne also highlighted that offering Copilot Chat for free is speeding up user adoption, which could give Microsoft an edge in the AI race. He added that Microsoft’s identity and security tools are a key part of its AI strategy and help it stand out from other large tech firms.

Finally, Materne noted that demand for Azure remains strong, not just for AI but also in other areas. As a result, he slightly raised his FY26 estimates. He believes Microsoft’s AI business could grow into a $110 billion opportunity by 2028. With steady growth and a strong balance sheet, he continues to view Microsoft as a reliable long-term investment and reiterated his Buy rating.

Is MSFT a Good Stock to Buy?

Wall Street remains impressed by Microsoft’s growth potential. According to recent data, 35 analysts have weighed in on MSFT over the past three months, and the verdict is a Strong Buy. Out of those, 30 have issued Buy ratings, with zero Sell calls in sight. The average MSFT stock price target now stands at $512.34, which suggests a 12.64% upside from its current price of $454.86.

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