Is Microsoft Stock On Track to Hit $680 in 12 Months?

Core Insights - Microsoft (MSFT) stock has increased over 45% in six months, driven by strong financial performance and demand for cloud and AI solutions [1] - The company's cloud segment generated over $168 billion in annual revenue for fiscal 2025, a 23% year-over-year increase, with Azure contributing more than $75 billion, reflecting a 34% increase [2] - Microsoft is rapidly developing a comprehensive AI product suite and operates over 400 data centers globally, enhancing its capacity to meet rising demand for cloud and AI services [3] Financial Performance - The commercial cloud business has surpassed $100 billion in bookings, supported by strong contract renewals and large-value deals, including several exceeding $10 million and $100 million [5] - Microsoft's commercial remaining performance obligation (RPO) reached $368 billion, a 37% year-over-year increase, with approximately 35% expected to convert into revenue within the next 12 months [6] Market Sentiment - Wall Street maintains a positive sentiment towards Microsoft, with the highest price target set at $680, indicating a potential upside of about 31% from its closing price of $517.35 on October 3 [4]