Source: Gordon Thompson
Oppenheimer’s Bullish Outlook on Microsoft’s Stock
On July 9, 2025, Oppenheimer analyst Brian Schwartz set an optimistic price target of $600 for Microsoft (NASDAQ: MSFT), which represented a potential increase of about 19.58% from its then trading price of $501.76. This bullish stance by Schwartz sends a strong signal to investors about the potential growth prospects of the tech giant. This optimistic outlook is largely influenced by Microsoft’s ongoing advancements and commitment to artificial intelligence (AI) technologies, specifically its Azure platform and the Copilot AI solution.
Microsoft’s AI Advancements: Azure and Copilot
Microsoft has made significant strides in AI through its Azure platform and Copilot. Azure, Microsoft’s cloud computing platform, has been instrumental in driving AI initiatives, including machine learning, analytics, and cognitive services. On the other hand, Copilot is an AI-powered code completion tool, which is designed to assist developers by offering suggestions for completing lines or blocks of code. These innovative solutions are predicted to be key revenue drivers for Microsoft in the future.
Schwartz upgraded Microsoft’s stock rating to “Outperform,” highlighting the company’s potential to significantly amplify revenue through AI. The analyst projects a potential revenue increase of $276 billion, reflecting the belief that Microsoft’s AI initiatives, such as Copilot and Azure-deployed partner AI revenue, will drive substantial growth through fiscal year 2030.
Microsoft’s Collaboration with Replit
Further strengthening Microsoft’s position in the AI space, the company recently collaborated with Replit, a San Francisco-based start-up, to introduce ‘Vibe Coding.’ This initiative allows users to build software without having to write code, demonstrating Microsoft’s commitment to expanding its AI capabilities. This collaborative venture not only bolsters Microsoft’s AI-driven offerings but also signals to investors that the company is consistently exploring new avenues to leverage AI technology.
Investor Interest in Microsoft’s AI Business
Schwartz believes that Microsoft’s strong growth in Azure and its AI business, in general, will continue to attract investor interest. He points out that the potential of Microsoft’s AI business is not yet fully reflected in the stock price, suggesting room for further growth. The analyst’s bullish stance is expected to encourage more investors to consider adding Microsoft to their portfolios.
As of now, the current stock price of Microsoft is $501.73, reflecting a slight increase of 1.03%. Over the course of the day, the stock has fluctuated between $499.74 and $506.78, with the latter being its highest recorded price over the past year. Microsoft’s market capitalization currently stands at approximately $3.73 trillion, with a trading volume of 11.99 million shares.
Microsoft: “One of the Long-Term AI Winners in Software”
Schwartz anticipates that Microsoft will emerge as “one of the long-term AI winners in software.” This optimistic view reinforces the bullish outlook on the company. With Microsoft’s ongoing commitment to innovation and expansion in AI, the future looks bright for the tech giant. The company’s ambitious AI strategy, combined with the successful implementation of AI initiatives, positions Microsoft as a strong contender in the competitive AI landscape. This underscores the potential for further growth and solidifies the bullish stance on Microsoft’s stock.