OpenAI is currently engaged in significant negotiations with Microsoft Corporation to potentially revise their ongoing partnership. Reports emerged last week that OpenAI is planning to cut the revenue it shares with Microsoft by at least half by 2030. The development could hit Microsoft stock hard, as its OpenAI partnership is a major player in revenue.
Microsoft’s support for OpenAI has been nothing short of massive. Since 2019, the tech giant has poured $13.75 billion into the AI startup, including a landmark $10 billion investment announced in early 2023. The investment has meant wonders for Microsoft and MSFT stock, with investors bullish due to the company’s continued work in AI development, as that sector continues to develop. Microsoft stock, despite this news, remains up around 4% this week.
On Monday, MSFT stock is trading around $443, up 2% in the past week. The company has ramped up its efforts in AI and cloud computing over the last few years, making it a premier tech stock investment choice. Analysts have suggested that it could be one of the best-performing magnificent-seven stocks, with the potential to surge in value to a new ATH. However, this new development with OpenAI could put a dent in things.
Having regained 13.13% over the past month of trading, MSFT has recovered the losses incurred from April’s tariff announcements. The stock has returned to 2025 highs of over $440. Should Microsoft’s sake of equity from its OpenAI deal be adjusted, that could equate to less revenue from the growing AI software.
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Microsoft (MSFT) Future Stock Forecast
Microsoft (MSFT) is trading near the top of its 52-week range and above its 200-day simple moving average. According to analysts at CNN, MSFT has a very strong chance to continue outperforming expectations, and could rise even further. With revenue up and the company developing its AI initiative and cloud computing, Microsoft has great potential this year.
Out of 63 analysts surveyed by CNN, 92% suggest buying the stock now, while the remaining 8% advise holding. CNN’s analysts project a median price projection of $500.00 over the next 12 months, a 14.75% ROI from current prices. Furthermore, the analysts also project that MSFT could go as high as $650.