Microsoft stock has underperformed the S&P 500 and Nasdaq with YTD gains of 15%. The “Magnificent 7” tech stocks, including Microsoft, did not make it to the top 20 gainers in the S&P 500 in 2025. Concerns over Microsoft’s AI capex have led to underperformance, with the company spending $35 billion on capex in the first quarter of FY 2026. Despite this, analysts maintain a “Strong Buy” rating on Microsoft, with a mean target price of $629.23. Looking ahead to 2026, Microsoft remains a solid buy with strong potential for double-digit returns.

Read more at Barchart: This Dividend-Yielding Tech Stock Looks a ‘Compelling Buy’ for 2026 After 2 Years of Underperformance