Morgan Stanley Forecasts 38% Upside for Microsoft Stock

Jakarta, Gotrade News - Microsoft is projected to see a significant price rally driven by the upward trend in global software spending. Morgan Stanley has maintained its "overweight" rating for the tech giant.

Key Takeaways

• MSFT price target is set at $650 per share

The analyst report suggests a potential upside of nearly 38% from its current price level. Morgan Stanley’s price target for the stock is currently pegged at $650.

Microsoft shares actually dipped about 4% since the start of January 2026. However, Morgan Stanley believes this bearish streak won't last long.

Global software spending growth is projected to rise by 9 basis points year-over-year. This data comes from the latest research report released by Morgan Stanley.

CIOs are anticipating a 7.3% growth for the company this year. This reflects the industry's bullish sentiment toward Microsoft's software ecosystem.

Massive investments in the AI sector continue to be the primary growth driver. This is further supported by plans to build a new data center facility in Michigan.

The 237-acre project briefly triggered some price fluctuations last week. According to Watcher Guru, investors are beginning to scrutinize the operational energy costs of the facility.

Wedbush analyst Dan Ives called the company a "core winner" in the tech sector for 2026. He noted that Azure services are ready to transition into full-scale enterprise deployments.

Tech budgets are now shifting heavily toward massive AI adoption. Dan Ives explained this in his latest research note.

Evercore ISI believes that systemic risks in the AI trade remain relatively limited. The healthy balance sheets of these tech giants serve as the main support factor for market stability.

Reference:

• Watcher Guru, Morgan Stanley: Microsoft (MSFT) to Rise On Software Spending. Accessed on January 19, 2026

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