Truist Reaffirms Buy on Microsoft Corporation (MSFT), Sees 32% Upside with OpenAI Boost

Microsoft Corporation (NASDAQ:MSFT) is among the high growth mega cap stocks you can buy and hold for the next 3 years. Analysts at Truist Securities have reaffirmed their ‘Buy’ rating on Microsoft Corporation (NASDAQ:MSFT) while maintaining a price target of $675.00, implying an upside of nearly 32%. This confidence stems from the company’s revised partnership agreement with OpenAI.

We’ve all heard about how strong Microsoft Corporation (NASDAQ:MSFT) is as an investment, and well, the stock still doesn’t show any signs of slowing down. Perfectly blending robust growth potential with continued profitability and protection against downside, the company is exceeding expectations. The latest $17.4B Nebius (NBIS) AI infrastructure deal, which secures long-term capacity and sustains abundant free cash flow, is a testament to the company’s glowing outlook.

While the S&P 500 (^GSPC)’s year-to-date return stands at 12.46%, Microsoft Corporation (NASDAQ:MSFT) reports an impressive return of 21.86%. The company enjoys an impenetrable wide moat that is driven by switching costs, network effects, and scale.

Microsoft Corporation (NASDAQ:MSFT), founded in 1975 and headquartered in Redmond, Washington, is a company specializing in software, services, devices, and solutions. With three main segments: Productivity and Business Processes, Intelligent Cloud, and Personal Computing, the company is committed to empowering every person and organization.

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.