Microsoft Corporation from $480 to $540 while reaffirming its “Buy” rating. This decision came on May 15 and is based on growing confidence in Microsoft’s cloud strength and its expanding role in artificial intelligence (AI).
Citi’s Big Bet on MSFT, Here’s Why
Citi believes Microsoft is positioned for major growth, especially through its cloud platform, Azure. The bank pointed out that Microsoft is showing strong confidence in future demand for its cloud services. Backing that up, the company is planning to increase capital spending, signaling aggressive expansion. As a result, Citi upgraded its forecast for Azure, predicting its revenue will grow at least 30% in Microsoft’s fiscal 2026. Citi also viewed Microsoft’s recent decision to lay off 3% of its workforce positively, expecting it to enhance the company’s financial efficiency and bottom line. And there’s more. Citi said Microsoft continues to lead in “generative AI”, a field that’s shaping the future of technology.
MSFT Stock Performance: Red-Hot Momentum
- In the last 3 months, MSFT shares have gained 11%.
- In just the past month, the stock soared by 24%.
With numbers like these, it’s no surprise that Citi and other analysts are excited.
After MSFT, What’s the Next Big Move?
While MSFT looks strong, the article hints that some AI stocks might offer even greater potential. It notes that one particular AI stock has surged since the beginning of 2025, even while many popular AI names lost nearly 25%. And it’s trading at under 5 times its earnings. That’s rare.
