Analyst Explains How Microsoft (MSFT) Stock Can Reach $600

Microsoft Corp (NASDAQ:MSFT) is one of the 10 Buzzing Stocks Everyone is Talking About.

Brian Schwartz, Oppenheimer analyst, recently talked about Microsoft Corp (NASDAQ:MSFT) during a program on CNBC and explained his bullish case for the company. The analyst has a $600 price target for the stock, which shows a 17% upside potential from July 21 stock price.

“What’s going to get Microsoft stock specifically to our price target is going to be upside potential that we think is going to exist from the earnings and their cash flow. As the spending ramps in the near term, we think that the earnings power could be 15% higher than what investors are currently thinking over the next 12 months from Microsoft. That combined with if they can maintain an accelerated growth within the core business, that too could drive a higher multiple for Microsoft.”

Mar Vista U.S. Quality Premier Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2025 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) shares rebounded in calendar Q2 following a strong fiscal Q3 2025 (March quarter), driven by accelerating demand for AI-related Azure services. Robust second-half momentum, coupled with strong bookings as reflected in the Remaining Performance Obligation exceeding $300 billion (+33% year over year), helped ease investor concerns around enterprise IT spending and the long-term return potential of Microsoft’s substantial AI infrastructure investments.

We continue to believe Microsoft is well-positioned to gain market share as organizations increasingly embrace a digital-first strategy and adopt generative AI solutions. With deep enterprise penetration and a comprehensive portfolio spanning Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), Microsoft remains the preeminent mission-critical IT provider across industries.

The company is executing effectively against a large and growing market opportunity by enabling digital transformation and delivering cutting-edge AI tools like ChatGPT that enhance productivity and lower costs. As a result, we expect Microsoft’s offerings to remain resilient, even in a challenging macroeconomic environment, supporting low double-digit intrinsic value growth over our investment horizon.”

While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.