The US stock market has continued to show a clear demand for artificial intelligence among investors. That could be massive for Microsoft (MSFT), as its recent expansion has the company set to lead the AI market, and its stock is bound for the $500 level sooner rather than later.
The Windows developer has remained one of the most promising tech firms throughout 2025. Although volatility has repressed gains for a host of mega-cap stocks, if things turn around at a macroeconomic level, Microsoft could be one of the greater beneficiaries.
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Microsoft Expansion has It Set to Lead AI Market While Stock Surges
The US stock market has failed to live up to rather high hopes entering 2025. That continued on Thursday, with the three primary indexes falling moderately amid continued geopolitical tensions and uncertainty. That has stagnated prices, although potential trade deal progress looks like it could turn things around in a hurry.
If that happens, and consistency can set its feet on Wall Street, the tech sector could be first in line to soar. Specifically, Microsoft has seen continued expansion prepare it to both lead the AI market and have its stock target the $500 level amid a mostly positive year so far.
Also Read: Microsoft (MSFT) Stock gets 32% Upside as Wall Street Buys In
The company announced that it would be investing $400 million in Switzerland. Those funds would be focused on the development of cloud computing and AI infrastructure. Moreover, it would expand the company’s global footprint in the space. Ultimately, it would edge ever closer to being the most dominant AI-focused tech firm on the market.
The news already has the stock amid the top 10 in the tech space with 284 hedge fund holders. Conversely, Microsoft holds a $505 median price target, which represents an 8% jump from its present $466 value. Alternatively, its bullish projection sits at $650, representing a 40% upside on top of its 11% increase year-to-date.