TD Cowen Raises Microsoft (MSFT) Price Target to $580, Reiterates 'Buy'

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks on Wall Street’s Radar. On July 17, TD Cowen reiterated the stock as “Buy” and raised its price target on the stock to $580 per share from $540.

The rating affirmation is backed by Microsoft’s position as a “clear beneficiary in the AI cycle.”

According to the firm’s analysis, there are strong performance checks for the Azure Cloud platform and expectations that previous capacity constraints will begin to ease.

TD Cowen’s new “bottoms-up” financial model has given them confidence that Azure growth will trend “well above” current Wall Street expectations in the coming quarters.

“MSFT reports 4Q on 7/30. While shares are hitting all-time highs, we think the story continues to grow increasingly attractive w/ MSFT positioned as a clear beneficiary in the AI cycle.”

“Azure checks were strong, we’re expecting capacity constraints to be easing, and our new bottoms-up model gives us confidence in Azure growth trending well above Street in the qtrs ahead. Reiterate Buy. PT to $580.”

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.

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Disclosure: None.