Key Stats for MSFT Stock
- Past-Week Performance: 3%
- 52-Week Range: $345 to $555
- Valuation Model Target Price: $786
- Implied Upside: 63% over 2.4 years
What Happened to MSFT Stock?
Microsoft Corporation (MSFT) stock rose about 3% last the week, trading within a narrow range as gains consolidated following earlier volatility tied to large-cap technology earnings.
Also last week, Reuters reported that Microsoft was in talks with Nvidia and Amazon to invest up to $60 billion in OpenAI, according to The Information.
The report indicated Microsoft could invest less than $10 billion, reinforcing its longstanding partnership, while no new financial commitments, revenue impacts, or operational changes were formally disclosed.
Market participants appeared to focus on broader scrutiny around AI capital intensity and cloud monetization, tempering near-term repricing despite continued strategic relevance of OpenAI collaborations.
No additional regulatory filings, governance updates, or insider disclosures specific to Microsoft were reported during the period beyond routine market coverage and third-party industry commentary.
Still, Microsoft declared no changes to guidance, cloud strategy, or capital allocation plans, leaving trading aligned with expectations already shaped by existing AI investment assumptions.
Is MSFT Stock Fairly Valued Right Now?
Under the valuation model shown, the stock is modeled using:
- Revenue Growth: 15.8%
- Operating Margins: 46.6%
- Exit P/E Multiple: 28.9x
Modeled through 2028, Microsoft’s valuation depends on sustained revenue growth, margin expansion, and exit multiple assumptions holding.
Specifically, the model assumes 15.8% revenue growth, 46.6% operating margins, and a 28.9x exit valuation multiple.
Based on these inputs, the model estimates a $786 target price, implying 63.2% total upside and 22.4% annualized returns.
Execution relies on Azure scale, AI monetization, enterprise pricing power, and operating leverage across cloud, software, and services.
Accordingly, Microsoft stock reflects execution risk tied to AI returns and capital intensity rather than valuation optimism.
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