Mizuho Raises Microsoft (MSFT) Price Target to $540, Reiterates Outperform on AI Strength

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks Investors Are Watching Closely. On July 16, Mizuho analyst Gregg Moskowitz raised the price target for the stock from $500 to $540, while maintaining an “Outperform” rating. The affirmation comes as part of a Q2 earnings preview for the software group.

According to Mizuho, Q2 checks by the firm have been good overall, characterized by “generally healthy” cybersecurity demand and “very strong” artificial intelligence adoption. However, several contacts have noted that there were a few more delays in deal completions. This may limit fundamental upside in this quarter.

Two of Mizuho’s favourite stocks to own this quarter are Microsoft and Cyberark. This is especially true ahead of the earnings release for the former.

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

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Trending AI Stocks in Focus This Week and 10 AI Stocks Gaining Attention on Wall Street.

Disclosure: None.