Microsoft Corporation (MSFT) Seen with 37% Upside as Goldman Highlights AI and Cloud Leadership

We recently compiled a list of the 10 Best Investments During A Recession. Microsoft Corporation tops our list for being one of the best investments during a recession.

On January 11, TheFly reported that Goldman Sachs initiated coverage on MSFT with a Buy rating and a $655 price target, implying ~37% upside. The key factors influencing long-term development, according to analyst Gabriela Borges, are MSFT’s strong AI positioning, cloud leadership, and vertical integration. Goldman predicts that by 2030, the company might reach an EPS of $35 due to core software growth patterns, increasing cloud demand, and growing AI usage.

On January 7, MSFT announced it would release Q2 2026 financial results on January 28, serving as a near-term catalyst for analyst activity.

Microsoft Corporation (NASDAQ:MSFT) is a global technology leader specializing in software, cloud computing, AI, and hardware solutions. Known for Windows, Office, Azure, and AI platforms, the company leverages vertical integration to drive growth, efficiency, and innovation, positioning itself as a dominant player in enterprise and consumer technology markets.

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.