Investors continue to keep a close eye on the Magnificent 7 — Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) — given their size, market reach, and ability to move major indices. Using TipRanks’ Stock Comparison Tool, we compared Microsoft and Alphabet to see which “Strong Buy” Magnificent 7 stock offers the better upside potential based on Wall Street’s latest outlook.
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Microsoft (NASDAQ:MSFT) Stock
Tech giant Microsoft has gained 18% so far this year. The company is stepping up its global AI expansion with a new $17.5 billion investment plan in India to build data centers and boost cloud capacity. The move comes as demand for AI services continues to rise across major markets and adds to the company’s broader push to scale its infrastructure.
This expansion follows solid cloud momentum. Azure revenue grew 40% in the first quarter of Fiscal 2026, while Azure and other cloud services generated $75 billion in Fiscal 2025, up 34% from the prior year. These gains highlight how central AI workloads have become to Microsoft’s growth.
At the same time, the company’s rising capex remains a concern for some investors. Microsoft expects its spending to increase again in Fiscal 2026 as it builds out more AI capacity, keeping near-term costs elevated even as long-term demand stays strong.
What is the Prediction for MSFT stock?
Recently, Barclays analyst Raimo Lenschow reiterated an Overweight rating on Microsoft stock and kept his $625 price target. The analyst highlighted Microsoft’s plan to raise prices for its Office and Microsoft 365 commercial plans starting July 1, 2026. He said the increase shows the strength of Microsoft’s pricing power, supported by steady enterprise demand and rising use of its AI tools.
Lenschow noted that Microsoft has added more than 1,100 new features across Microsoft 365, Security, Copilot, and SharePoint over the past year, which the company says justifies the higher prices.
Currently, Wall Street has a Strong Buy consensus rating on Microsoft stock based on 32 Buys and two Holds. The average MSFT stock price target of $632.22 implies 28% upside potential.
Alphabet (NASDAQ:GOOGL) Stock
Alphabet has seen a sharp rise in investor interest over the past month, helped by steady progress across its AI lineup. The stock has gained 68% so far this year. The launch of the Gemini 3 model and the new Ironwood TPUs positioned Google as a key supplier of AI infrastructure. Investor sentiment also improved after Berkshire Hathaway disclosed a $4.3 billion stake in the company.
Alphabet’s cloud business continues to benefit from the broader AI shift. The company crossed $100 billion in quarterly revenue for the first time in Q3 2025, while Google Cloud ended the quarter with a $155 billion backlog, reflecting persistent demand for its AI-focused services and enterprise tools.
Despite the strong rally, some analysts remain cautious about valuation. They note that expectations for Alphabet have moved up quickly, and the stock may need sustained cloud and AI growth to support its current levels.
What Is the Price Target for GOOGL Stock?
Recently, Truist analyst Youssef Squali raised his price target on the stock to $350 from $320, citing improving trends in digital advertising. Squali reiterated a Buy rating and said he expects U.S. e-commerce and digital ad spending to reach record levels this holiday season, helped by a resilient consumer and more effective ad tools powered by AI.
The analyst also made a modest upward adjustment to his outlook for the Other Bets unit, pointing to Waymo’s faster rollout across more U.S. cities.
Overall, Wall Street has a Strong Buy consensus rating on Alphabet stock based on 29 Buys and seven Holds. The average GOOGL stock price target of $320.15 indicates 0.97% upside potential.
See more GOOGL analyst ratings
Conclusion
Wall Street remains bullish on both Magnificent 7 names discussed in this comparison piece. Analysts see a much larger upside for Microsoft, with a price target that implies about 28% potential gains from current levels. Meanwhile, Alphabet also carries a Strong Buy rating, but the projected upside is modest at around 1%.
Despite the difference in near-term upside, both stocks continue to earn strong analyst support based on their solid positions in cloud and AI.