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Wall Street Bullish on ​Microsoft Corporation (MSFT) Ahead of its FQ1 2026 Earnings

​Microsoft Corporation (NASDAQ:MSFT) is one of the Best Stocks to Buy for High Returns Heading into 2026. Wall Street is bullish on ​Microsoft Corporation (NASDAQ:MSFT) ahead of its FQ1 2026 earnings release, scheduled to be released on October 29 (Post-Market).

On October 29, Patrick Colville from Scotiabank reiterated a Buy rating on the stock with a price target of $650. A day earlier on October 28, William Blair analyst Jason Ader also reiterated a Buy rating on ​Microsoft Corporation (NASDAQ:MSFT) without disclosing any price targets.

Ander highlighted the company’s recent agreement with OpenAI as a significant development noting that it ensures continued access to OpenAI’s technologies which are crucial for Microsoft’s Copilot and Azure monetization. In addition, the analyst also likes ​Microsoft Corporation’s (NASDAQ:MSFT) valuation which he believes indicates strong financial health and growth potential.

In addition to William Blair, On October 27, John Difucci from Guggenheim upgraded the stock from Neutral to Buy with a price target of $586. ​Difucci noted that it is evident that Microsoft Corporation (NASDAQ:MSFT) and its AI hyperscalers would benefit from the fast-growing technologies.

He believes that the growing adoption of AI will boost the company’s cloud services. He likes the company’s near monopoly in the productivity software space and notes that there are significant opportunities for the company to monetize AI.

​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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