Raymond James Reiterates Outperform on Microsoft (MSFT) Ahead of Earnings

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks in Focus on Wall Street. On January 26, Raymond James analyst Andrew Marok reiterated an Outperform rating on the stock with a $600.00 price target. The rating affirmation comes ahead of the company’s fiscal second-quarter 2026 earnings report due today, January 28.

Raymond James sees robust Azure performance for Microsoft stock, but remains cautious due to AI memory constraints. Overall, it is positive heading into earnings.

According to the firm, sentiment on MSFT stock has been declining, with shares trading lower alongside many other “Magnificent 7” technology companies, except for Alphabet.

Based on market checks, Azure cloud services have been performing strongly, and non-AI workloads continue to drive the segment while AI supply remains limited.

The firm also noted how there are growing concerns about memory supply and higher prices, raising concerns that Microsoft’s target for demand/supply equilibrium may be delayed further. However, it is still too early for the company to talk about any delay in this week’s earnings call.

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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.