Microsoft stock (NASDAQ: MSFT) opened Tuesday’s bell trading at $383.21 and remained on the greener side of the spectrum. The brief surge of 0.36% came as a breather after the stock plunged nearly 25% in value in six months. In 2026 alone, MSFT is down close to 20% in the charts and is among the least-performing Magnificent 7 stocks.

Buy Microsoft Stock (MSFT): Bank of America’s New Price Target

Bank of America remains bullish on Microsoft stock’s prospects and has reinstated a buy rating on Monday. This puts MSFT in the must-watch list as the upside forecasted by BofA is in double-digits. An investment now when the markets are volatile due to the Middle East conflict could prove beneficial when the situation de-escalates and oil prices cool down.

According to the reinstated price prediction, Bank of America predicts that Microsoft stock could reach a high of $500. That’s an uptick and return on investment (ROI) of approximately 31% from its current price of $383. Therefore, an investment of $1,000 could turn into $1,310 if the price prediction from BofA turns out to be accurate.

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Bank of America projected that the tech titan would have a durable multi-year growth across cloud and AI as support for the buy rating. Microsoft stock currently trades at a P/E ratio of 23.96 with a PEG ratio of 0.83. This suggests that the equity remains attractively valued relative to its growth prospects. The tech giant is generating revenue growth of nearly 17% with a market cap of $2.84 trillion.

When the conflict in the Middle East eases, Microsoft’s stock would begin to surge in value. The focus would shift solely to the company’s performance and not on geopolitical tensions. MSFT would remain in the spotlight and recover from the slump that it is currently in. It is advised to accumulate MSFT during dips to make the most out of it.