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Microsoft Corporation (MSFT) Down More Than 12% Since Q1 2026 Results

​Microsoft Corporation (NASDAQ:MSFT) is one of the Best Cloud Stocks to Buy Now. Microsoft Corporation (NASDAQ:MSFT) has declined more than 12.8% since its fiscal Q1 2026 results. However, Wall Street maintains a positive outlook on the stock. On November 20, Gregg Moskowitz from Mizuho Securities reiterated a Buy rating on the stock with a $640 price target. On the same day, Karl Keirstead from UBS also maintained a Buy rating on the stock with a $650 price target.

​Analyst Keirstead sees strong revenue growth prospects for Azure in 2026, driven by new AI capacity. He also highlighted that the stock currently trades at a forward multiple of 42 times free cash flow and 25 times non-GAAP earnings per share. The price target of $650 is based on the anticipation that Microsoft Corporation’s (NASDAQ:MSFT) 2027 free cash flow multiple will be 50x. Keirstead notes that this valuation will appear reasonable if Azure sustains growth in the high 30% to low 40%, along with non-GAAP EPS growth of 20% to 25%.

​In other news, on November 18, Microsoft Corporation (NASDAQ:MSFT) announced a new strategic partnership with NVIDIA and Anthropic aimed at scaling the Claude AI model on Microsoft Azure. Management noted that Anthropic has agreed to purchase $30 billion worth of Azure compute capacity with the aim of contracting additional one gigawatt capacity. Moreover, Microsoft Corporation (NASDAQ:MSFT) also aimed to invest more than $5 billion in Anthropic as part of the partnership.

​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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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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