Citi raises price target on MSFT stock to $540, bullish on cloud demand and AI.

From Yahoo Finance: 2025-05-20 10:02:00

Citi raised Microsoft Corporation’s price target to $540 from $480, citing confidence in the demand for its cloud products and plans to increase capital spending. The bank expects Azure’s sales to surge at least 30% in fiscal 2026, and believes layoffs will improve financial results. Microsoft remains a leader in generative AI.

In the last three months, MSFT stock has gained 11% and soared 24% in the last month. While potential exists for MSFT, Citi believes AI stocks offer greater promise for higher returns in a shorter timeframe. They highlight an AI stock with significant upside potential and low earnings multiple compared to popular AI stocks.

Citi’s bullish outlook on Microsoft Corporation (MSFT) is driven by confidence in cloud product demand, increased capital spending plans, and expectations of a 30% surge in Azure sales by fiscal 2026. The bank also anticipates improved financial results from recent layoffs and highlights Microsoft’s leadership in generative AI.



Read more at Yahoo Finance: Citi Raises Its Price Target on MSFT Stock