Microsoft stock touted as cheap buy amid AI boom and bullish price forecasts

Microsoft’s shares are being described as a rare, “once‑in‑a‑decade” buying opportunity after a steep valuation decline, despite strong performance in its AI and cloud businesses. The company’s Azure platform posted a 40% revenue increase and its AI segment reached a $37 billion annual run rate, growing 123% year‑over‑year. Overall revenue growth is at 18% and analysts expect continued expansion into fiscal 2026‑27.

Analysts at TD Cowen reaffirmed a buy rating, projecting the stock could rise to $540, down from a prior $610 target but still indicating significant upside from its current $428 level. The firm cites macro‑economic pressures such as higher oil prices and US‑Iran tensions but views the revised target as a pragmatic valuation adjustment rather than a warning sign.