Microsoft’s (MSFT) AI Strategy Reinforces Its Position as a Long-Term Winner, Analyst Says

Core Viewpoint - Microsoft Corporation (NASDAQ:MSFT) is recognized as a significant player in the AI sector, with analysts expressing a positive outlook on the stock, particularly in the context of AI monetization and growth potential [1][4]. Group 1: Analyst Ratings and Predictions - Jefferies analyst Brent Thill has reiterated a Buy rating on Microsoft with a price target of $675.00, suggesting a selective investment approach in the software sector until AI monetization becomes clearer [1]. - The average price target among Wall Street analysts for Microsoft is $630, indicating a potential upside of 33.23%, while the highest target of $730 suggests a 54.38% upside [4]. - Predictions for 2026 include strong AI growth for Microsoft, alongside a resurgence in AI at Meta and a rebound for Amazon driven by AWS [2]. Group 2: Business Performance and AI Integration - Microsoft is showing robust performance across its various business segments, with a notable expansion in its artificial intelligence capabilities and the integration of AI features throughout its product portfolio [3]. - The company focuses on providing AI-powered cloud, productivity, and business solutions, emphasizing efficiency, security, and advancements in AI technology [4].