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The artificial intelligence boom can send Microsoft shares even higher over the coming months, according to Wells Fargo. Heading into the company’s scheduled earnings release on July 30, analyst Michael Turrin maintained his overweight rating on the “Magnificent Seven” stock and increased his price target by $15 to $600, which implies 19.3% upside from Monday’s close. That updated outlook comes as the stock has surged in recent months and currently sits near record highs. It’s gained more than 30% in the past three months and more than 19% year to date, meaningfully outperforming the S & P 500 over both timeframes. “We still see a bright future ahead for Microsoft, driven by continued growth prospects in huge categories of IT spend, ability to further monetize strong positioning in multiple end markets, and a financial profile that continues to exhibit durable margin expansion,” Turrin wrote in a note dated Monday. “We acknowledge shares are trading near historical highs, but think this is justified given its early AI lead and strong incumbent position in a tight market, esp. favorable in the current environment.” MSFT .SPX 3M mountain MSFT vs. S & P 500, 3-month The analyst revealed that recent field work signals that demand for Microsoft’s AI tools and solutions isn’t slowing down, boosting his optimism for not just the upcoming quarter’s results but also fiscal year 2026. He also pointed out that its guidance for capital expenditures growth suggests “significant” AI spending for fiscal 2026, estimating $100 billion in capital expenditures. “While not necessarily expecting a repeat of MSFT’s 300bps Azure beat in FQ3, upbeat partner feedback to us suggests upside to 34-35% guide given robust core + AI demand—further building on last qtr’s ‘accelerated growth’ in Enterprise & improved scale motions,” Turrin also wrote. Most analysts on Wall Street have joined the analyst in taking a bullish stance on the name, as 56 out of 62 analysts in all have a strong buy or buy rating, per LSEG data. The remaining six have stepped to the sidelines with a hold rating. Microsoft also has a consensus target of roughly $525, reflecting more than 4% upside potential.
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