Ghazal Ahmed
2 min read
In This Article:
Microsoft Corporation (NASDAQ:MSFT) is one of the 15 AI Stocks Making Waves on Wall Street. On June 11, Citi opened a positive catalyst watch on Microsoft. The firm said estimates for the company’s Azure are too low. Its analyst, Tyler Radke, reiterated a “Buy” rating on the stock with a $605.00 price target.
“We open a positive catalyst watch on MSFT with our view that Street Azure estimates are too low for FY26. This is supported by exit rate math and capex ROI analysis which supports Azure growth in the mid-to-high 30s% and recent read-throughs and positive checks. We believe the catalyst will be F’4Q25 earnings when FY26 guidance is announced and beyond as both Microsoft and OpenAI AI revenue continues to ramp.”
A financial analyst working away on her laptop surrounded by financial reports and charts. Microsoft remains the firm’s “top pick in software given its relative defensiveness in a choppy macro environment, AI product cycle, and our reinforced conviction that Street estimates on Azure may be too low for FY26.” The firm has raised its base case estimate, now seeing “36.1% y/y cc FY26 Azure growth (vs. consensus at 32.1% y/y),” thereby raising its price target. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Buzzing AI Stocks on Latest News and Ratings and 10 Trending AI Stocks on Wall Street Right Now. Disclosure: None.
