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: 415.750
Low
500.00
Averages
631.36
High
678.00
Current: 415.750
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
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 Explores Cursor Acquisition but Holds Off on Bid
- Acquisition Interest: Microsoft recently considered acquiring AI coding startup Cursor for $60 billion but ultimately did not make an offer, indicating competitive pressure in the rapidly evolving AI tools market.
- Market Competition: Despite GitHub Copilot gaining 4.7 million paying subscribers, a 75% increase year-over-year, Cursor and its rivals Anthropic and OpenAI continue to dominate the market, highlighting Microsoft's insufficient investment in the AI sector.
- SpaceX Acquisition: SpaceX announced it has secured the right to acquire Cursor for $60 billion, with a $10 billion penalty if the deal does not close, reflecting Elon Musk's strong interest and investment intentions in the AI space.
- Financing Dynamics: Cursor was valued at $50 billion during its fundraising process, underscoring the strong demand for tools that facilitate rapid website and application development, while also indicating ongoing investor interest in the AI sector.
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Google Plans Additional $40 Billion Investment in Anthropic
- Investment Commitment: Alphabet Inc., Google's parent company, plans to invest up to $40 billion in AI company Anthropic, including an initial $10 billion cash investment at a $350 billion valuation, with an additional $30 billion contingent on performance targets, significantly enhancing Google's competitive edge in the AI sector.
- Data Center Collaboration: Google and Microsoft are bidding for SoftBank's under-construction data center in the U.S., with a decision expected this month, which will not only secure their computing power but also potentially strengthen their positions in the cloud computing market.
- Technological Showcase: Google CEO Sundar Pichai unveiled the eighth-generation Tensor Processing Unit (TPU) chips designed for AI model training, whose impressive specifications garnered attention from Tesla CEO Elon Musk, highlighting Google's technological leadership in AI hardware.
- Collaborative Industry Trends: This week, U.S. tech giants made significant AI-related announcements, indicating a trend of collaboration within the industry, such as Anthropic's agreement with Amazon to secure over $100 billion in AWS technologies over the next decade, reflecting the urgent demand for computing power.
See More
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- Layoff Scale Expands: Meta announced a 10% workforce reduction, equating to about 8,000 jobs, set to begin on May 20, aimed at enhancing operational efficiency and offsetting other investment pressures.
- Microsoft's First Voluntary Layoffs: Microsoft confirmed it will offer voluntary buyouts, with about 7% of U.S. employees eligible, potentially leading to 8,750 cuts, reflecting the company's need for structural adjustments in the AI era.
- Nike Also Cutting Jobs: Nike announced layoffs affecting approximately 1,400 employees, primarily in its technology department, indicating that companies outside the tech sector are also grappling with challenges posed by market uncertainties.
- Industry Confidence Declines: Glassdoor's Employee Confidence Index revealed a 6.8 percentage point year-over-year drop in tech sector confidence to 47.2%, highlighting rising employee anxiety about the market, prompting companies to adopt more aggressive layoff measures.
See More
Google Plans $40 Billion Investment in Anthropic
- Investment Expansion: Google has confirmed plans to invest up to $40 billion in AI company Anthropic, with an initial $10 billion based on Anthropic's latest valuation of $380 billion, while the remaining $30 billion is contingent on specific performance milestones, thereby solidifying Google's leadership in the AI sector.
- Computing Capacity Boost: The collaboration between Anthropic, Google, and Broadcom will provide 5 gigawatts of computing capacity expected to come online next year, which not only addresses the surging demand from enterprises and consumers but also enhances the competitiveness of its Claude models in the market.
- Historical Investment Relationship: Since Google's initial $300 million investment in 2023, its total investment in Anthropic has exceeded $3 billion, with a 14% stake, indicating Google's ongoing commitment and strategic positioning in the AI landscape.
- Intensifying Market Competition: As tech giants like Google and Amazon ramp up investments in AI labs, Anthropic's annualized revenue has surpassed $30 billion, highlighting the fierce competition it faces in the rapidly evolving AI market, particularly against rivals like OpenAI.
See More
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- Layoff Expansion: Meta announced a 10% workforce reduction, equating to about 8,000 jobs, while Microsoft is offering voluntary buyouts for the first time, potentially leading to 8,750 cuts, highlighting the tension between AI investments and labor costs in the tech sector.
- Structural Shift: Over 92,000 tech workers have been laid off as of 2026, with total layoffs nearing 900,000, prompting economists to warn of an impending labor crisis due to the rapid adoption of AI technologies across industries.
- Hiring Market Contraction: While demand for AI roles surges, hiring for entry-level and generalized IT positions is slowing, indicating a fundamental shift in employment dynamics in the AI era, with employee confidence dropping to 47.2% in the tech sector.
- Emerging Business Models: Startups are achieving faster revenue growth with fewer employees in the AI era, as venture capitalists note that modern software companies can generate $50 million in revenue with just 50 employees, showcasing significant efficiency improvements in the industry.
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- Software Sector Analysis: Burry believes the pressures facing the software industry stem from a 'reflexive positive feedback loop' between declining software stock prices and corporate debt, but he asserts that this dynamic cannot persist much longer, suggesting a potential rebound ahead.
- AI Impact Assessment: While Burry acknowledges the serious impacts of AI on several software companies, he remains unconcerned about the stocks he has chosen, believing they still hold investment value, particularly given the strong performance of Microsoft's Azure cloud business.
- Copilot Growth Potential: Although Microsoft's AI assistant Copilot currently has only 15 million paid users, a small fraction of its Microsoft 365 user base, CEO Satya Nadella is actively working on releasing new features, which could become a growth engine in the future, despite the presence of many AI assistant options in the market.
See More
Microsoft Explores Cursor Acquisition but Holds Off on Bid
- Acquisition Interest: Microsoft recently considered acquiring AI coding startup Cursor for $60 billion but ultimately did not make an offer, indicating competitive pressure in the rapidly evolving AI tools market.
- Market Competition: Despite GitHub Copilot gaining 4.7 million paying subscribers, a 75% increase year-over-year, Cursor and its rivals Anthropic and OpenAI continue to dominate the market, highlighting Microsoft's insufficient investment in the AI sector.
- SpaceX Acquisition: SpaceX announced it has secured the right to acquire Cursor for $60 billion, with a $10 billion penalty if the deal does not close, reflecting Elon Musk's strong interest and investment intentions in the AI space.
- Financing Dynamics: Cursor was valued at $50 billion during its fundraising process, underscoring the strong demand for tools that facilitate rapid website and application development, while also indicating ongoing investor interest in the AI sector.
See More
Google Plans Additional $40 Billion Investment in Anthropic
- Investment Commitment: Alphabet Inc., Google's parent company, plans to invest up to $40 billion in AI company Anthropic, including an initial $10 billion cash investment at a $350 billion valuation, with an additional $30 billion contingent on performance targets, significantly enhancing Google's competitive edge in the AI sector.
- Data Center Collaboration: Google and Microsoft are bidding for SoftBank's under-construction data center in the U.S., with a decision expected this month, which will not only secure their computing power but also potentially strengthen their positions in the cloud computing market.
- Technological Showcase: Google CEO Sundar Pichai unveiled the eighth-generation Tensor Processing Unit (TPU) chips designed for AI model training, whose impressive specifications garnered attention from Tesla CEO Elon Musk, highlighting Google's technological leadership in AI hardware.
- Collaborative Industry Trends: This week, U.S. tech giants made significant AI-related announcements, indicating a trend of collaboration within the industry, such as Anthropic's agreement with Amazon to secure over $100 billion in AWS technologies over the next decade, reflecting the urgent demand for computing power.
See More
Tech Giants Intensify Layoff Wave Amid AI Push
- Layoff Scale Expands: Meta announced a 10% workforce reduction, equating to about 8,000 jobs, set to begin on May 20, aimed at enhancing operational efficiency and offsetting other investment pressures.
- Microsoft's First Voluntary Layoffs: Microsoft confirmed it will offer voluntary buyouts, with about 7% of U.S. employees eligible, potentially leading to 8,750 cuts, reflecting the company's need for structural adjustments in the AI era.
- Nike Also Cutting Jobs: Nike announced layoffs affecting approximately 1,400 employees, primarily in its technology department, indicating that companies outside the tech sector are also grappling with challenges posed by market uncertainties.
- Industry Confidence Declines: Glassdoor's Employee Confidence Index revealed a 6.8 percentage point year-over-year drop in tech sector confidence to 47.2%, highlighting rising employee anxiety about the market, prompting companies to adopt more aggressive layoff measures.
See More
Google Plans $40 Billion Investment in Anthropic
- Investment Expansion: Google has confirmed plans to invest up to $40 billion in AI company Anthropic, with an initial $10 billion based on Anthropic's latest valuation of $380 billion, while the remaining $30 billion is contingent on specific performance milestones, thereby solidifying Google's leadership in the AI sector.
- Computing Capacity Boost: The collaboration between Anthropic, Google, and Broadcom will provide 5 gigawatts of computing capacity expected to come online next year, which not only addresses the surging demand from enterprises and consumers but also enhances the competitiveness of its Claude models in the market.
- Historical Investment Relationship: Since Google's initial $300 million investment in 2023, its total investment in Anthropic has exceeded $3 billion, with a 14% stake, indicating Google's ongoing commitment and strategic positioning in the AI landscape.
- Intensifying Market Competition: As tech giants like Google and Amazon ramp up investments in AI labs, Anthropic's annualized revenue has surpassed $30 billion, highlighting the fierce competition it faces in the rapidly evolving AI market, particularly against rivals like OpenAI.
See More
Tech Industry Layoffs Surge Amid AI Spending
- Layoff Expansion: Meta announced a 10% workforce reduction, equating to about 8,000 jobs, while Microsoft is offering voluntary buyouts for the first time, potentially leading to 8,750 cuts, highlighting the tension between AI investments and labor costs in the tech sector.
- Structural Shift: Over 92,000 tech workers have been laid off as of 2026, with total layoffs nearing 900,000, prompting economists to warn of an impending labor crisis due to the rapid adoption of AI technologies across industries.
- Hiring Market Contraction: While demand for AI roles surges, hiring for entry-level and generalized IT positions is slowing, indicating a fundamental shift in employment dynamics in the AI era, with employee confidence dropping to 47.2% in the tech sector.
- Emerging Business Models: Startups are achieving faster revenue growth with fewer employees in the AI era, as venture capitalists note that modern software companies can generate $50 million in revenue with just 50 employees, showcasing significant efficiency improvements in the industry.
See More
Michael Burry Reenters Investment Scene with Microsoft Bet
- New Investment Direction: Michael Burry recently announced a new investment in Microsoft (MSFT) through his Substack, reflecting his confidence in 'bombed-out software and payment stocks,' despite Microsoft experiencing a 23% drop in Q1, marking its worst performance since the 2008 financial crisis.
- Software Sector Analysis: Burry believes the pressures facing the software industry stem from a 'reflexive positive feedback loop' between declining software stock prices and corporate debt, but he asserts that this dynamic cannot persist much longer, suggesting a potential rebound ahead.
- AI Impact Assessment: While Burry acknowledges the serious impacts of AI on several software companies, he remains unconcerned about the stocks he has chosen, believing they still hold investment value, particularly given the strong performance of Microsoft's Azure cloud business.
- Copilot Growth Potential: Although Microsoft's AI assistant Copilot currently has only 15 million paid users, a small fraction of its Microsoft 365 user base, CEO Satya Nadella is actively working on releasing new features, which could become a growth engine in the future, despite the presence of many AI assistant options in the market.
See More
