Wedbush Reiterates Outperform on Microsoft (MSFT) on Azure AI Momentum

Microsoft Corporation (NASDAQ:MSFT) is one of the must-buy AI stocks to put in. On December 22, Wedbush predicted that Microsoft Corporation (NASDAQ:MSFT) volition acquisition monolithic gross maturation connected the backmost of AI. The steadfast stated that the marketplace is underestimating the standard of the accidental heading into 2026. Analyst Dan Ives highlighted that investors are specifically underestimating the Azure maturation story, and arsenic such, Microsoft is 1 of Wedbush’s apical picks among ample tech companies.

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Accordingly, Wedbush reaffirmed its Outperform standing connected Microsoft banal with a $625 terms target. The analysts labeled the institution a “core winner” successful its sum of AI-focused firms. Ives pointed retired that “investor skepticism astir Microsoft’s AI maturation illustration has created country for upside surprises,” with the institution positioned “in the saccharine spot of endeavor strategical AI deployments.” He argued that the banal inactive has yet to terms successful the upcoming question of enlargement from unreality and AI services.

Five days earlier, connected December 17, Morgan Stanley’s Keith Weiss stated that Microsoft is firing connected each cylinders. Weiss arrived astatine this decision aft nonstop meetings with institution leaders. According to Weiss, the tech elephantine has beardown lawsuit request crossed its businesses, which is fueling dependable growth. At the aforesaid time, astute AI investments are delivering existent profits and mounting the signifier for adjacent fatter margins ahead. The market, Weiss argued, hasn’t afloat priced successful this strength. For that reason, Morgan Stanley maintained Microsoft arsenic its Top Pick successful large-cap software.

Microsoft Corporation (NASDAQ:MSFT) is simply a planetary exertion leader. The institution integrates AI crossed its halfway products, including Microsoft 365, Azure Cloud, and LinkedIn. It besides partners with OpenAI to present precocious generative AI capabilities done its Copilot platform. Its Azure level provides enterprises with scalable AI infrastructure, customized chips, and instrumentality learning services.

While we admit the imaginable of MSFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.