From Yahoo Finance: 2025-04-10 09:40:00

Tech analyst Dan Ives lowered Microsoft’s price target to $475 from $550, predicting a drop in data center spending. He also expects Big Tech to face challenges similar to those during the pandemic. Ives anticipates a 10-15% decrease in data center spending for MSFT, GOOG, and AMZN due to high tariffs on China.

Ives believes Big Tech will report weak Q2 results and plans to assess companies based on their outlooks for 2026. He expects significant volatility in Big Tech stocks in the coming weeks. Despite potential in MSFT, Ives sees greater promise in AI stocks for higher returns in a shorter timeframe.

While acknowledging MSFT’s potential, Ives believes AI stocks offer greater promise for higher returns. He recommends exploring an AI stock that has shown growth since 2025, outperforming popular AI stocks by around 25%. The analyst anticipates significant volatility in Big Tech stocks in the near future.

Read more: Well-Known Analyst Cuts MSFT Price Target, Says Big Tech Will Undergo “Covid Playbook”