Microsoft (MSFT) Coverage Initiated by H.C. Wainwright Amid AI and Cloud Services Growth
Summary
Microsoft is receiving strong analyst backing, with H.C. Wainwright initiating coverage and Wedbush and Wells Fargo raising price targets due to robust growth in AI and cloud services. Wedbush increased its target to $600, citing high AI demand, while Wells Fargo projects $100 billion in AI revenue and raised its target to $585. Microsoft's significant capital investments underscore its commitment to expanding its enterprise AI and cloud offerings, reflecting strong investor confidence and active market interest.
Microsoft (MSFT) Gains Strong Analyst Backing Amid AI and Cloud Surge
REDMOND, WA – Microsoft (NASDAQ: MSFT) is experiencing significant analyst attention, driven by its accelerating growth in artificial intelligence (AI) and cloud services. On June 25, 2025, H.C. Wainwright initiated coverage on the tech giant with a "Neutral" rating, acknowledging the company's strong momentum in these pivotal sectors.
At the time of H.C. Wainwright's initiation, Microsoft's stock was trading at $491.69. This new coverage comes as other prominent financial institutions express heightened optimism regarding Microsoft's future prospects.
Wedbush Raises Price Target to $600 on AI Demand
Wedbush has significantly increased its price target for Microsoft to $600, up from a previous $515. This upward revision is primarily attributed to the surging demand for AI services delivered through Microsoft's Azure cloud platform and its Copilot AI assistant. Analyst Dan Ives highlighted that AI is fundamentally transforming Microsoft's cloud growth trajectory, projecting that over 70% of Microsoft's extensive customer base will adopt enterprise AI solutions by 2028. This strong conviction led to Microsoft's inclusion on Wedbush's coveted "Best Ideas" list.
Wells Fargo Projects $100 Billion AI Revenue, Overweight Rating
Echoing Wedbush's positive sentiment, Wells Fargo projects Microsoft's AI business alone to generate a staggering $100 billion in revenue. Despite Microsoft shares trading near historical highs, Wells Fargo maintains that the AI sector is still in its nascent stages, presenting substantial long-term growth opportunities. Consequently, Wells Fargo has reaffirmed its "Overweight" rating on MSFT and raised its price target from $565 to $585, underscoring its confidence in the company's continued expansion.
Market Activity and Strategic Investments
As of the latest close, Microsoft's stock price stood at $490.21, reflecting a slight gain from the prior session. The stock traded within a range of $490.12 to $494.53 during the day, with a robust market capitalization of approximately $3.64 trillion. Trading volume on the NASDAQ exchange reached 7.43 million shares, indicating active investor engagement.
Microsoft's strategic commitment to its growth areas is evident in its planned capital expenditures. The company anticipates investing approximately $80 billion for fiscal year 2025, with further increases projected for 2026. These substantial investments are designed to bolster its leadership in AI and cloud services, positioning Microsoft for continued dominance as it expands its enterprise offerings across diverse industries.