UBS Maintains Buy on Microsoft (MSFT) Amid AI Dominance

Microsoft Corporation (NASDAQ:MSFT) ranks among the best software stocks to buy right now. UBS maintained its $650 price target and Buy rating for Microsoft Corporation (NASDAQ:MSFT) on August 20, highlighting the company’s dominant position in artificial intelligence. The firm also stated that Microsoft’s recent price and license adjustments are anticipated to boost cloud revenues.

The bank reported that Microsoft Corporation (NASDAQ:MSFT) was “standardizing pricing across most of its customer tiers on EA contract types, with partners consistent in their feedback that this results in a net price increase.” Set to take effect on November 1, these changes apply to Microsoft’s Online Services package, which includes Azure, Microsoft 365/Office 365, and Dynamics 365.

According to UBS, the firm now has “marginally more confidence in our outlook for total c/c revenue growth of 14% in FY26E” and believes that Microsoft’s guidance reflected the new pricing.

Microsoft Corporation (NASDAQ:MSFT) is a leading technology company known for its core software products, which include the Windows OS, Microsoft 365 suite, and Edge browser. Its product portfolio includes corporate software, software development tools, video games, gaming gear, and cloud services.

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