Bernstein has once again raised its stock price target for Microsoft (MSFT) from $647 to $660. The financial institution also maintains a outperform rating for the tech stock. Bernstein’s price target revision goes against recent investor sentiment that increased AI spending may not be sustainable. Let’s discuss why Wall Street continues to be bullish on Microsoft (MSFT) stock prices.
Why Did Bernstein Raise Microsoft’s Stock Price Target?
Bernstein is not the only Wall Street firm that is bullish on Microsoft’s (MSFT) future. Wells Fargo also recent revised its stock price target for the company from $650 to $700. Tigress Financial raised its target from $680 to $690. Bank of America raised its target from $480 to $500. As you can see, an increasing number of Wall Street firms are turning bullish on Microsoft’s future.
According to Bernstein, Microsoft’s recent results show that investors are not too worried about the company overspending on AI infrastructure. The financial institution also highlighted Microsoft’s limited purchase commitments beyond the next 12 months. This makes the company more flexible if AI demand changes.
Microsoft released a healthy quarterly earnings report late last month. The company saw 18% revenue growth and 23% earnings growth. A majority of the growth was driven by the Intelligent Cloud segment. Analysts are bullish on Microsoft’s AI future, especially with Copilot and Azure.
Also Read: Microsoft Stock Latest Price Target (MSFT)
Microsoft is also developing its own AI accelerators. This could potentially impact Nvidia’s market. The Maia 200 accelerator has displayed a 30% better performance per dollar. The development could change the tide in the AI sector. Moreover, it may reduce Microsoft’s exposure to unnecessary AI expenditure.
Despite stellar revenue, Microsoft (MSFT) stock price is facing a dip. MSFT closed 2.26% (11.38 point) lower on Wednesday, August 12, 2026. The stock faced an additional 0.05% (0.26 point) dip in the pre-market hours.
