Truist Securities Keeps Buy Rating on Microsoft and Increases Price Target to $675
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
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Should l Buy MSFT?
Source: Benzinga
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft's Copilot User Growth and Market Potential
- User Growth Data: Microsoft revealed that Copilot reached 15 million paying users in its latest earnings call, reflecting a 160% year-over-year growth, although this figure appears small compared to its 450 million Microsoft 365 paid users, indicating potential market demand.
- Market Competition Analysis: While Copilot's conversion rate stands at approximately 3.3%, lower than ChatGPT's 5%, Microsoft's existing user base provides a solid opportunity for future growth through cross-selling, especially as AI tools become more mainstream.
- Revenue Potential Outlook: Should Microsoft achieve another 160% growth in users over the next year, it could generate an additional $8.6 billion in revenue, which represents nearly 3% of its projected $328 billion revenue for fiscal year 2026, highlighting Copilot's commercial value.
- Strategic Positioning and Competitive Advantage: With significant equity stakes in both OpenAI and Anthropic, Microsoft can leverage AI to enhance Microsoft 365's competitiveness, thereby maintaining its leadership in the office software market and mitigating competitive pressures in the future.
See More
Microsoft Faces Intensifying Competition in Cloud Computing
- Cloud Competition: Microsoft faces fierce competition in the cloud computing sector from Amazon and Alphabet, with Azure's revenue growth of 39% lagging behind Google Cloud's 48%, indicating market share pressures.
- Rising Infrastructure Costs: The company's increasing infrastructure costs have raised concerns among investors, as CFO Amy Hood noted a direct correlation between capital expenditures and Azure's revenue, potentially impacting future returns on investment.
- Stock Valuation Decline: Microsoft's price-to-earnings (P/E) ratio has fallen to 25, nearing its lowest level in three years, reflecting market caution regarding its growth prospects, despite analysts' price target of $596 suggesting a 48% upside.
- Investor Sentiment Weakens: Following the earnings report on January 28, Microsoft's stock has dropped 16%, leading to investor doubts about the returns from its AI infrastructure investments, although the low valuation may present a buying opportunity in the long run.
See More
Infosys Shares Climb Following Announcement of AI Collaboration with Anthropic.
- Infosys Stock Performance: Infosys stock experienced a rally following the announcement of a partnership with Anthropic.
- Collaboration Focus: The collaboration aims to develop custom artificial intelligence agents.
See More
U.S. Companies' AI Investments Prompt Fund Managers to Shift Focus to International Stocks
Global Fund Managers' Sentiment: A recent survey from Bank of America indicates that global fund managers are optimistic about stocks as they approach the middle of the first quarter.
Concerns Over U.S. Equity Markets: Despite the overall positive sentiment, there is hesitance among fund managers to invest in U.S. equity markets due to rising concerns regarding the pace of artificial intelligence spending.
See More
Software Stock Slump Sparks Investment Trend
- Software Stock Performance: In 2026, the tech sector has faced significant declines, with the Nasdaq-100 index down approximately 3% year-to-date, while major SaaS stocks like Microsoft, Shopify, Adobe, and Salesforce have seen declines of 16%, 26%, 27%, and 30% respectively, reflecting market concerns about the software industry.
- AI Disruption Concerns: Investors are worried that artificial intelligence could disrupt the enterprise software business model, posing potential threats to software companies, especially if AI tools become advanced enough to replace existing software products.
- JP Morgan's Research Insights: Research from JP Morgan suggests that the market's reaction to the AI-driven software sell-off is exaggerated, labeling this reasoning as “broken logic,” and arguing that if AI is set to replace all software companies, then AI stocks should be more valuable.
- Emerging Investment Opportunities: JP Morgan encourages investors to consider “AI-resilient” software stocks, asserting that the specialized solutions and unique data stacks offered by software companies make them less susceptible to AI replacement in the short term, indicating that the current sell-off may present a favorable investment opportunity.
See More
Zillow Partners with Blizzard to Launch In-Game Housing Experience
- In-Game Housing Launch: Blizzard Entertainment's World of Warcraft officially introduces player housing, marking a significant upgrade in gameplay that is expected to attract more players and enhance user engagement.
- Zillow Collaboration: Zillow partners with Blizzard to launch Zillow for Warcraft®, a dedicated microsite that allows players to browse a curated selection of in-game homes from Azeroth, enhancing the immersive experience of the game.
- Enhanced User Experience: With Zillow's custom experience, players can explore in-game homes more intuitively, increasing their engagement with the virtual world while also opening new market opportunities for Zillow.
- Market Potential: This collaboration not only showcases Zillow's innovative capabilities in the gaming sector but may also attract a crossover audience of real estate enthusiasts and gamers, further expanding its user base and brand influence.
See More
Microsoft's Copilot User Growth and Market Potential
- User Growth Data: Microsoft revealed that Copilot reached 15 million paying users in its latest earnings call, reflecting a 160% year-over-year growth, although this figure appears small compared to its 450 million Microsoft 365 paid users, indicating potential market demand.
- Market Competition Analysis: While Copilot's conversion rate stands at approximately 3.3%, lower than ChatGPT's 5%, Microsoft's existing user base provides a solid opportunity for future growth through cross-selling, especially as AI tools become more mainstream.
- Revenue Potential Outlook: Should Microsoft achieve another 160% growth in users over the next year, it could generate an additional $8.6 billion in revenue, which represents nearly 3% of its projected $328 billion revenue for fiscal year 2026, highlighting Copilot's commercial value.
- Strategic Positioning and Competitive Advantage: With significant equity stakes in both OpenAI and Anthropic, Microsoft can leverage AI to enhance Microsoft 365's competitiveness, thereby maintaining its leadership in the office software market and mitigating competitive pressures in the future.
See More
Microsoft Faces Intensifying Competition in Cloud Computing
- Cloud Competition: Microsoft faces fierce competition in the cloud computing sector from Amazon and Alphabet, with Azure's revenue growth of 39% lagging behind Google Cloud's 48%, indicating market share pressures.
- Rising Infrastructure Costs: The company's increasing infrastructure costs have raised concerns among investors, as CFO Amy Hood noted a direct correlation between capital expenditures and Azure's revenue, potentially impacting future returns on investment.
- Stock Valuation Decline: Microsoft's price-to-earnings (P/E) ratio has fallen to 25, nearing its lowest level in three years, reflecting market caution regarding its growth prospects, despite analysts' price target of $596 suggesting a 48% upside.
- Investor Sentiment Weakens: Following the earnings report on January 28, Microsoft's stock has dropped 16%, leading to investor doubts about the returns from its AI infrastructure investments, although the low valuation may present a buying opportunity in the long run.
See More
Infosys Shares Climb Following Announcement of AI Collaboration with Anthropic.
- Infosys Stock Performance: Infosys stock experienced a rally following the announcement of a partnership with Anthropic.
- Collaboration Focus: The collaboration aims to develop custom artificial intelligence agents.
See More
U.S. Companies' AI Investments Prompt Fund Managers to Shift Focus to International Stocks
Global Fund Managers' Sentiment: A recent survey from Bank of America indicates that global fund managers are optimistic about stocks as they approach the middle of the first quarter.
Concerns Over U.S. Equity Markets: Despite the overall positive sentiment, there is hesitance among fund managers to invest in U.S. equity markets due to rising concerns regarding the pace of artificial intelligence spending.
See More
Software Stock Slump Sparks Investment Trend
- Software Stock Performance: In 2026, the tech sector has faced significant declines, with the Nasdaq-100 index down approximately 3% year-to-date, while major SaaS stocks like Microsoft, Shopify, Adobe, and Salesforce have seen declines of 16%, 26%, 27%, and 30% respectively, reflecting market concerns about the software industry.
- AI Disruption Concerns: Investors are worried that artificial intelligence could disrupt the enterprise software business model, posing potential threats to software companies, especially if AI tools become advanced enough to replace existing software products.
- JP Morgan's Research Insights: Research from JP Morgan suggests that the market's reaction to the AI-driven software sell-off is exaggerated, labeling this reasoning as “broken logic,” and arguing that if AI is set to replace all software companies, then AI stocks should be more valuable.
- Emerging Investment Opportunities: JP Morgan encourages investors to consider “AI-resilient” software stocks, asserting that the specialized solutions and unique data stacks offered by software companies make them less susceptible to AI replacement in the short term, indicating that the current sell-off may present a favorable investment opportunity.
See More
Zillow Partners with Blizzard to Launch In-Game Housing Experience
- In-Game Housing Launch: Blizzard Entertainment's World of Warcraft officially introduces player housing, marking a significant upgrade in gameplay that is expected to attract more players and enhance user engagement.
- Zillow Collaboration: Zillow partners with Blizzard to launch Zillow for Warcraft®, a dedicated microsite that allows players to browse a curated selection of in-game homes from Azeroth, enhancing the immersive experience of the game.
- Enhanced User Experience: With Zillow's custom experience, players can explore in-game homes more intuitively, increasing their engagement with the virtual world while also opening new market opportunities for Zillow.
- Market Potential: This collaboration not only showcases Zillow's innovative capabilities in the gaming sector but may also attract a crossover audience of real estate enthusiasts and gamers, further expanding its user base and brand influence.
See More
