Microsoft (NASDAQ: MSFT) is among the worst-performing Magnificent 7 stocks, having slumped 20% year-to-date. The global software giant has struggled to climb above the $400 mark since June. While market commentators say this could be the best time to accumulate MSFT, others warn that the equity is yet to bottom out. Worries about its capex on AI are increasing, as spending has topped $190 billion.
On the heels of the bearish conditions, investment banking firm DA Davidson has updated its MSFT price target. The financial firm is bullish on Microsoft stock’s prospects and wrote in a note to clients that accumulating the equity below the $400 zone is beneficial. The investment bank has given a double-digit upside potential for the software titan. Therefore, keeping MSFT on your must-watch list can be fruitful to decide when to take an entry position.
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What is DA Davidson’s Price Target For Microsoft Stock?
DA Davidson’s stock market analyst Gil Luria predicts Microsoft stock will reach a high of $550. This is among the most bullish forecasts for MSFT given by a Wall Street analyst. The leading giant is currently trading at $386, and the analyst implies that it could rise by 42% next. That’s a staggering increase, indicating that adding it to the cart now could lead to massive gains. Buying the dips on MSFT could also be beneficial before the rally begins.
An investment of $1,000 could turn into $1,400+ if the price prediction turns out to be accurate. The analyst reasoned his bullish thesis on Copilot, mentioning that it is already functioning as an orchestration layer that directs queries and tasks to the most appropriate AI models. He gave the company a significant advantage over its competitors in the broader AI space. The analyst highlighted Microsoft’s expanding integration with open-source AI models, which can take it to the finishing line.