Citi Lowers Its Price Target on Microsoft (MSFT) from $690 to $660, Reiterates a ‘Buy’ Rating

Microsoft Corporation (NASDAQ:MSFT) is included in our list of the best stocks to buy and hold for 20 years.

Citi Lowers Its Price Target on Microsoft (MSFT) from $690 to $660, Reiterates a ‘Buy’ Rating

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On January 21, 2026, Microsoft Corporation (NASDAQ:MSFT) saw Citi lower its price target from $690 to $660, while reiterating a ‘Buy’ rating. The firm’s target reduction reflects a more cautious short-term setup heading into fiscal Q2. The more mixed reseller surveys and partner checks caught the firm’s attention. As a result, the firm reduced its estimates for the company’s non-Azure businesses amid weaker PC demand.

Yet Azure is expected to surpass expectations in the second quarter, with the cloud segment’s role as the primary earnings engine driving the optimism. Microsoft Corporation (NASDAQ:MSFT) retains a spot among the firm’s top mega-cap ideas.

Meanwhile, four days earlier, Reuters reported that Elon Musk, the first person to cross $640 billion in net worth, is seeking up to $134 billion from OpenAI and Microsoft Corporation (NASDAQ:MSFT). The entrepreneur alleges that he is entitled to the wrongful gains associated with his early support of OpenAI, with Microsoft benefiting by $13.3 billion to $25.1 billion. However, both companies have dismissed the claims as baseless, with a jury trial set to begin in April. While this sparks uncertainty, no immediate operational impact on Microsoft can be stated.

Microsoft Corporation (NASDAQ:MSFT) focuses on developing software, cloud services, and devices across Productivity, Intelligent Cloud, and Personal Computing. Meanwhile, its Azure platform anchors growth, and enterprise software, Windows, and gaming provide diversified recurring revenue streams.

While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.