Microsoft’s (MSFT) stock is at an all-time high on June 27 and on the cusp of breaking above $500 a share as the artificial intelligence (AI) trade comes roaring back.
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MSFT stock was trading at $499.30 at noon hour and could close above $500 a share on a split adjusted basis. The current rally coming off April lows has pushed Microsoft’s share price up 19% this year and put its market capitalization at $3.70 trillion, second only to Nvidia (NVDA) at $3.84 trillion.
Analysts and traders on Wall Street are now debating which technology giant will be the first to reach a $4 trillion market cap, Microsoft or Nvidia. Several analyst have also been raising their ratings and price targets on MSFT stock during its current bull run. Wedbush tech analyst Daniel Ives recently raised his price target on Microsoft’s shares to $600 from $515 while reiterating a Buy rating on the stock.
Bullish Sentiment
Analysts and investors are turning increasingly bullish on Microsoft as sentiment towards artificial intelligence (AI) again turns positive. The Seattle-based technology giant’s share price has also been rising since the company reported strong first-quarter financial results in May that showed hefty growth in the Azure cloud computing unit.
More recently, reports have surfaced that the Windows maker is planning to cut thousands of jobs as it looks to reduce its labor costs while increasing its AI spending. Microsoft is seen as a leader in generative AI and is cascading the technology across its various business segments and consumer-facing products.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 35 Wall Street analysts. That rating is based on 30 Buy and five Hold recommendations issued in the last three months. The average price target on MSFT stock of $521.41 implies 4.71% upside from current levels.
