Strong Analyst Sentiment on Microsoft (MSFT) Despite Price Target Cuts and Heavy AI Spend

Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to buy right now.

As of January 12, 2026, investors remain confident in Microsoft Corporation (NASDAQ:MSFT)’s growth outlook, with 95% of Wall Street analysts bullish. The consensus price target is $630.00, implying 31.40% upside.

The most recent commentary came from Barclays on January 12, 2026, as it reduced its price target on Microsoft Corporation (NASDAQ:MSFT) from $625 to $610, while maintaining an ‘Overweight’ rating. The update came as the investment firm adjusted its 2026 outlook for the software group, citing a positive setup for that space. The firm remains confident in the software sector for 2026, with macro and IT spending stabilizing and stock valuation levels remaining low. Furthermore, the firm sees the current opportunity as compelling, with investors staying underweight on software stocks.

Four days earlier, Wells Fargo also reduced its price target on Microsoft Corporation (NASDAQ:MSFT) from $700 to $665, while keeping its ‘Outperform’ rating. The firm remains bullish on AI growth, which it projects to continue in 2026. It named infrastructure providers, established incumbents, and innovation-led platforms as three key areas of interest, as secular tailwinds are projected to improve performance despite adoption concerns.

Meanwhile, Microsoft Corporation (NASDAQ:MSFT) shared a crucial update on January 5, 2026, strengthening its AI ecosystem. The company acquired Osmos, an agentic AI data engineering platform that breaks down data workflows and converts raw information into AI-ready assets in OneLake, the core of Microsoft Fabric. This follows the multi-year partnership with Cognizant announced in mid-December, which involves embedding agentic AI and Copilot capabilities into enterprise workflows across healthcare, retail, life sciences, financial services, and manufacturing. With these developments, the company enhances its operational resilience, productivity, and analytics unification, cementing its position as a leader in enterprise AI solutions.

Microsoft Corporation (NASDAQ:MSFT) focuses on developing and supporting software, cloud services, devices, and solutions.

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