Microsoft stock (NASDAQ: MSFT) has successfully breached the $400 wall on Monday and is gearing up to move further in the charts. It went above $400 after nearly two months, and bulls are awaiting the next leg-up. Traders who accumulated the dips during MSFT’s downturns are all in profit in July. The tech sector remained in the red as the grey cloud on capex spending is a cause of concern. However, the market is slowly moving out of the worries and looking at robust revenues in every earnings call.
On the heels of the ongoing positivity of breaching the $400 level, when can Microsoft stock move beyond $500? While the target looks too far away, a few rallies can push it beyond the target. The tech industry has seen several such rallies, where a 25% spike in a month is seen as normal. A double-digit spike can never be ruled out, as the industry is positioning itself to shift into the next-gen technology powered by AI.
Also Read: TD Cowen Maintains Microsoft Stock Price Target With a Buy Rating
When Will Microsoft Reach the $500 Target?
The latest forecast from 247wallst, with a consensus of 57 analysts, projects Microsoft stock to reach $503 next. MSFT opened Tuesday’s trading session at $402, and traders can expect to make a profit of nearly $99 per share if they take an entry position today. The stock market analysis firm has also given MSFT both a strong buy and buy rating, indicating that its price is well on its way to reaching $500.
The timeline given by the firm for Microsoft stock to reach $503 is in the next 12 months. If the price prediction turns out to be accurate, investors can make close to 25% returns. Therefore, an investment of $1,000 could turn into $1,250 if the estimates meet the target. That’s massive gains in a year, as not every asset can generate this much gain. Keeping MSFT on your watch list could be beneficial, as the uptick is immense.