Microsoft (MSFT) Prce Target Trimmed by $25 Despite Better-than-Expected Q1 Results

With an upside potential of 33.31% as of May 3, Microsoft Corporation (NASDAQ:MSFT) is included among the 10 Best Fortune 500 Stocks to Buy According to Analysts.

Microsoft (MSFT) Prce Target Trimmed by $25 Despite Better-than-Expected Q1 Results

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Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and marketing software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people’s lives.

On April 30, Deutsche Bank trimmed its price target on Microsoft Corporation (NASDAQ:MSFT) from $575 to $550, but kept its ‘Buy’ rating on the shares. The lowered target still reflects an upside of almost 33% from the current price levels. The analyst sees Microsoft’s recent Q3 2026 report as “very solid”, with the company checking “all the right boxes” and delivering accelerating AI growth.

Microsoft Corporation (NASDAQ:MSFT) exceeded revenue and earnings expectations in its Q3 report on April 29. The company grew its revenue by 18% YoY to $82.8 billion, powered by the continued strength of Microsoft Cloud, which exceeded $54 billion in revenue, up 29% YoY.

Microsoft Corporation (NASDAQ:MSFT) expects the revenue for its Azure and other cloud services business to grow between 39% ​and 40% in constant currency in Q4. Meanwhile, total revenue is targeted in the range of $86.7 billion and $87.8 billion, indicating a growth of 13% to 15%. Moreover, the company expects to spend $190 billion this calendar year.

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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