Microsoft (MSFT) Gets $540 Price Target – Analyst Sees $24 Billion AI Revenue Boom

We recently published a list of 10 AI Stocks on Analyst’s Radar Today. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other AI stocks that are on analyst’s radar today.

One of the most notable analyst calls on May 27, Tuesday, was for Microsoft Corporation. TD Cowen reiterated the stock as “Buy” and raised its price target on the stock to $540 per share from $490. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

According to analyst Derrick Wood, annual recurring revenues at Azure AI, which are a suite of cloud-based AI services, could boost from $4 billion in 2024 to around $24 billion in 2026. Wood said this leap was “conservative with solid room for upside.”

Microsoft (MSFT) Gets $540 Price Target - Analyst Sees $24 Billion AI Revenue Boom

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He further stated that Azure growth will be boosted as AI revenue accelerates development in the Azure model, particularly OpenAI’s contribution.

“As AI revenue is rapidly building in the Azure model, especially OpenAI’s contribution, we think this will start to put stronger upward pressure on total Azure growth. We think a return to Azure upside trends and firmer growth in the mid-30% level should help drive a stronger narrative around Azure and greater fund flows back into MSFT. ”

Overall, MSFT ranks 1st on our list of AI stocks that are on analyst’s radar today. While we acknowledge the potential of MSFT as an investment, 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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