Raymond James Reiterates Outperform on Microsoft (MSFT) Ahead of Earnings

Microsoft Corporation (NASDAQ:MSFT) is one of the AI Stocks in Focus on Wall StreetOn January 26, Raymond James analyst Andrew Marok reiterated an Outperform rating on the stock with a $600.00 price target. The rating affirmation comes ahead of the company’s fiscal second-quarter 2026 earnings report due today, January 28.

Raymond James sees robust Azure performance for Microsoft stock, but remains cautious due to AI memory constraints. Overall, it is positive heading into earnings.

According to the firm, sentiment on MSFT stock has been declining, with shares trading lower alongside many other “Magnificent 7” technology companies, except for Alphabet.

Raymond James Reiterates Outperform on Microsoft (MSFT) Ahead of Earnings

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Based on market checks, Azure cloud services have been performing strongly, and non-AI workloads continue to drive the segment while AI supply remains limited.

The firm also noted how there are growing concerns about memory supply and higher prices, raising concerns that Microsoft’s target for demand/supply equilibrium may be delayed further. However, it is still too early for the company to talk about any delay in this week’s earnings call.

Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements.

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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Disclosure: None.