Microsoft (MSFT) Gets $600 Target as AI Spending Surges - Wells Fargo Stays Bullish

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks Gaining Attention on Wall Street. On July 15, Wells Fargo analyst Michael Turrin maintained his “Overweight” rating on the stock and increased his price target by $15 to $600. The firm is bullish on the shares heading into Microsoft’s scheduled earnings release on July 30. It believes that the artificial intelligence boom can send Microsoft shares even higher over the coming months.

“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. 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.”

Based on recent field work, the firm highlighted that demand for Microsoft’s AI tools and solutions isn’t slowing down. This, in turn, has boosted their optimism for the company’s upcoming quarter’s results and also for fiscal year 2026. The firm’s guidance for capital expenditures growth suggests “significant” AI spending for fiscal 2026, forecasting $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.”

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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