The Bull Case for AI Stocks Is ‘Far Weaker’ Than You Think…At Least According to This Analyst. 1 Stock He’s Downgrading Now.

Core Viewpoint - Some Wall Street analysts are reducing growth expectations for major tech companies like Amazon and Microsoft, indicating a shift in sentiment despite a high-growth market characterized by strong earnings from the "Magnificent 7" tech giants [1][2]. Microsoft Downgrade - Analyst Alexander Haissl from Rothschild & Co. Redburn downgraded Microsoft from "Buy" to "Neutral," with a revised price target of $500 per share, down from $560, suggesting minimal upside potential [2][4]. - Microsoft's current forward price-earnings ratio is 31 times, indicating that the stock may be overvalued, especially if the economics of its hyperscaler business model are weaker than previously assumed [6]. - Concerns about the high capital expenditures required for data center and AI infrastructure development contribute to the bearish outlook on Microsoft stock [6][7]. Analyst Consensus - Despite Haissl's downgrade, 48 analysts cover Microsoft, with a consensus rating of "Strong Buy" and a price target of over $628 per share, indicating approximately 30% upside potential from current levels [8][9].