Wells Fargo Maintains Outperform on Microsoft (MSFT) Despite Lowered Target

Core Viewpoint - Microsoft Corporation (NASDAQ:MSFT) is recognized as a leading software infrastructure stock by hedge funds, with recent price target adjustments reflecting ongoing confidence in its growth potential driven by AI integration [1][3]. Group 1: Analyst Ratings and Price Targets - Wells Fargo has reduced its price target for Microsoft from $700 to $665 while maintaining an Outperform rating, indicating a positive outlook despite the adjustment [1]. - Jefferies analyst Brent Thill reiterated a Buy rating with a price target of $675, emphasizing Microsoft's AI integration as a significant growth driver [3]. Group 2: AI Landscape and Market Trends - Wells Fargo's software-sector update for 2026 highlights AI as a critical focus area, suggesting that investors can find opportunities in infrastructure providers, established companies, and innovation-driven platforms [2]. - The firm anticipates variability in AI adoption trends but believes that fundamental drivers will support performance through 2026 [2]. Group 3: Company Overview - Microsoft develops and sells a diverse range of software, cloud services, devices, and business solutions, catering to both individual users and enterprise customers globally [4].