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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.

Image by Tawanda Razika from Pixabay

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.

READ NEXT: What Are the Best Stocks to Buy Right Now? and 10 Stocks Under $1 That Will Explode.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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