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NASDAQ:MSFT
Microsoft Corp (MSFT)
Financials 
Technical Analysis 
Aug 27, 2026, 12:00 amThis summary was created by AI, based on 132 opinions in the last 12 months.
Experts have mixed opinions on Microsoft's current position, particularly in relation to its AI initiatives and overall valuation. While some analysts express concerns over the performance of its Co-Pilot AI and the potential risks from competitors like OpenAI and Anthropic, others highlight the company's strong financial position, significant free cash flow, and robust revenue growth, particularly from its cloud segment, Azure. Many agree that the stock has become attractive at current price levels, with valuations ranging from fair to undervalued due to its solid business fundamentals, ongoing investments in AI and cloud infrastructure, and potential for future growth. Amidst the uncertainties in the tech sector, they believe Microsoft remains well-positioned to adapt and thrive, even as it navigates the challenges posed by the evolving AI landscape.
It has a number of drivers but the incumbent business took it to where it was. There are a number of catalysts such as AI and it has kind of re-invented itself. Sees a reasonable growth trajectory ahead of it. With AI, unless profitability starts to show up in volume, then we would see a slowdown. Google and the metrics of the underlying returns of Amazon's data centre business look interesting.
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Premium contentWe reiterate MSFT as a TOP PICK. The company announced today a new suite of AI products for retailers to assist in everything from inventory purchasing and management, thru product discovery, right through to final sale. The 32% ROE and commitment by management to continue to aggressively buy back shares makes the 10x book value more palatable. We will continue to recommend a tight stop at $453, looking to achieve $600 -- upside potential of 25%. Yield 0.7%
(Analysts’ price target is $629.37)
Is a long-term buy and hold. Has owned this for 20 years. Would add now. Not worried at all about this pullback. Is the #1 recurring revenue business in the world. Not expensive. Is massive and trades at a beta of 1. Will beat the market long-term. As high a quality as you can get. Clean balance sheet. 24% return on capital. They make great products. The top software name.
Matt KacurBy the rules, he can't make a Past Pick a Top Pick; otherwise, he would have. Can't get enough chips to meet demand. This company (along with AMZN and GOOG) is going to distribute AI through the cloud into our day-to-day lives. Remains extremely bullish on it.
Dan RohintonAmazing business, but at 35x PE is a little expensive. Return on capital is trending down a little. Is one of his largest positions. If you own this, continue to hold. Enter this 20-30% lower around the low-20s PE.
Jason Del VicarioStill has everything going for it. Pullback is a good opportunity.
Brian MaddenPremium contentWe again reiterate MSFT as a TOP PICK following recently released earnings showing rising cash reserves, while debt was retired and shares aggressively bought back. Margins expanded 18% over the year and its intelligent cloud revenues surged 28%. Its ROE over 30% continues to demonstrate its strong position in the growing AI space. We continue to recommend a tight stop at $453, looking to achieve $630 -- upside potential over 30%. Yield 0.7%
(Analysts’ price target is $630.33)
Announced this morning that a handful of clients are shying away from adding to their AI infrastructure. People bought, and they want to see how it works before they buy some more. (Kim's immediate thought was, oh no, it's one of his Top Picks :( But this recent pullback/consolidation is a great opportunity.
About 40% of revenue still comes from Azure (cloud side). Some pressure on free cashflow. Forward PE and price to sales metrics are in line with the 5-year averages. Good time to buy a leader. So many horses in the race on both software, hardware, and AI. Yield is 0.76%.
Kim BoltonPremium contentOnce upon a time, Microsoft was regarded as the leader in AI among the Mag 7. Then, Alphabet stole their crown by launching Gemini 3. Yes, Wall Street is fickle, but the prudent investor should not ignore MSFT. Azure is still growing at 40%, its overall top line at 23%, the company is swimming in $25 billion in cash and buying back shares, and AI is embedded in its offerings. Bears point to Microsoft's 34x PE, which is indeed high. MSFT's post-Covid chart shows that the stock tops out around 36-37x. So, there may be a little more upside before the stock bounces off that ceiling.
Short-term breather is an opportunity to get all her clients to a full-weight position. Heartbeat of the enterprise cloud that's driving the next leg of growth. Expanding AI ecosystem, which reduces dependence on any single provider. This will help support long-term innovation and flexibility.
Not as worried about financial circularity on this name. Still a leader in the space. Growth not as concentrated as some of the other tech names. AI runway is still early, and MSFT is positioned to benefit. Ranks 10/10 fundamentally, sees 30% upside from here. Yield is 0.74%.
Brianne GardnerPremium contentWe reiterate MSFT as a TOP PICK following its recently announced AI partnership that includes Nvidia and Anthropic. Analysts see earnings growth exceeding 15% annually over the next five years -- in line with this year's 18% growth. Cash reserves are prudently being used to aggressively buy back shares and free cash flow remains over $25 billion. We continue to recommend a tight stop at $453, looking to achieve $630 -- upside potential over 30%. Yield 0.7%
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It has been kind of out of favour but has a track record of innovation. It had the foresight to invest in AI in 2019. It has transitioned to a recurring revenue operation with a monthly subscription system. It can package together a base of suites which gives it a strong competitive moat. It is very profitable with operating margins over 40%. Also has a very strong public cloud business. Capital spending has increased along with all the other big techs but has the flexibility to pull back according to demand. Buy 71 Hold 2 Sell 0
(Analysts’ price target is $630.08)