D.A. Davidson Remains a Buy on Microsoft Corporation (MSFT)

​Microsoft Corporation (NASDAQ:MSFT) is one of the Good Stocks to Buy According to Analysts. On December 4, D.A. Davidson reiterated a Buy rating on Microsoft Corporation (NASDAQ:MSFT) with a $650 price target. Earlier on December 3, Brent Thill from Jefferies also reiterated a Buy rating on the stock with a $675 price target.

​The stock fell around 3% on December 3, after a report by The Information stating that the company lowered its AI software sales target as its salespeople missed their goals in the last fiscal year. According to the report, less than one-fifth of the company’s sales team in one of the Azure units met the foundry sales targets of 50%. Moreover, in another unit, the sales quota was dropped by 50% due to the team missing targets. While Microsoft Corporation (NASDAQ:MSFT) refuted the report, noting they did not lower sales quotas or targets, the report cited two salespeople in Azure’s cloud unit.

​Regardless of the recent volatility, D.A. Davidson remains a Buy on the stock. The firm noted that OpenAI’s contribution to the company’s business is significant. The firm believes that OpenAI spending will remain a priority for Microsoft Corporation (NASDAQ:MSFT) as it can help the company maintain its fastest-growing hyperscaler status in the market.

​Microsoft Corporation (NASDAQ:MSFT) is a leading technology company known for a wide range of devices, software, and services. Some of the core offerings by the company include productivity software, including Microsoft Office and Azure, the Windows operating system, and gaming devices.

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. This article is originally published at Insider Monkey.