Is Microsoft Undervalued by Investors? These Tech Stock Experts Think So.

Core Insights - Microsoft (MSFT) stock is expected to continue its upward trend into 2026, with analysts believing it remains undervalued as the new year approaches [1][2] - Wedbush analysts project that Microsoft's Azure cloud computing service and Copilot AI assistant could contribute an additional $25 billion in sales through fiscal 2026 [2] - The average price target among analysts is $635, indicating expectations for Microsoft stock to rise above its previous records [4] Group 1 - Analysts from Wedbush maintain an "outperform" rating on Microsoft with a price target of $625, suggesting nearly 30% upside from current levels [1] - The AI sector is anticipated to continue driving growth, with major tech companies investing heavily in AI infrastructure [3] - Microsoft is expected to play a foundational role in the next stages of AI development, making it a compelling buy at current levels [3] Group 2 - A majority of analysts rate Microsoft as a "buy," with only one out of 13 analysts recommending a "hold" [4] - Microsoft shares have increased approximately 15% since the beginning of the year but remain about 10% below their recent record closing high [6] - Investors are currently underestimating the potential value that Microsoft's Azure services could add as the AI industry expands [6]