Microsoft stock (MSFT) is in a precarious situation, down as much as 11% in 2025 thus far. Growing economic anxieties in the United States, fueled by the implementation of tariffs and an escalating trade war, are fostering a generally unfavorable market climate for MSFT. Thus, many experts are suggesting that as the stock dips, now could be the time to sell. Alternatively, other experts suggest this falloff is just the beginning.
MSFT shares are down, making investors question if they should buy the stock at this low price. Microsoft has some of the highest upside out of all of the magnificent seven stocks. For starters, the Windows developer has emerged as one of the leaders in artificial intelligence over the last year. The firm made waves when it became an early investor in ChatGPT developer OpenAI, and that has paid off massively.
Moreover, its AI investment has fueled success in its cloud sector. The company has seen its cloud revenue increase 20% to $24 billion in Q1, according to a recent report. These factors could point Microsoft and MSFT stock in the right direction in the remainder of 2025.
Microsoft (MSFT) Stock Forecast: Best Potential Out of Magnificent-7?
Over the next 12 months, Microsoft (MSFT) has plenty of potential to reverse its poor performance to start 2025. Currently, MSFT is trading near the bottom of its 52-week range and below its 200-day simple moving average. This hints that it could now be the cheapest spot to purchase Microsoft shares.
Furthermore, several analysts are suggesting that the stock will begin to rebound and outperform soon. Bank of America analyst Brad Sills reiterated his buy rating on Microsoft stock but lowered his price target to 480 from 510. While forecasts are being lowered, most analysts are still bullish on MSFT’s potential. Out of 61 analysts surveyed by CNN, 90% recommend buying the stock, while the remaining 10% suggest holding onto shares. CNN’s analysis also forecasts a maximum climb of 66.89% from current prices for $600.