Microsoft stock (NASDAQ: MSFT) briefly reached $501 on Thursday for the first time in 2026. It closed the day’s trading session at $499, indicating that the next spot is above the $500 zone. The bulls have been trying for nearly eight months to get there and have been successful in August. This is a new price level for Microsoft, and traders who accumulated its dips this year at the $350 level and $400+ levels are all making major profit.

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Microsoft Stock Price Prediction: Citi Raises Target on MSFT

Leading global investment bank Citi has raised its Microsoft stock price target as MSFT touches $500. The bank wrote in a note to clients that buying MSFT even at a yearly high of $500 could still be profitable. This makes the equity a must-watch asset as the upside potential has further steam despite the recent surge. It rose nearly 29% in a month, delivering jaw-dropping gains to traders in just 30 days.

Citi has raised its price target for Microsoft stock from $570 to $600, as the equity touched $500 on Thursday. That’s a hike of $30 from its previous price prediction. It also represents a profit of $100 per share if traders take an entry position today. That’s an uptick and return on investment (ROI) of approximately 20% from its current price. Therefore, an investment of $1,000 could turn into $1,200 if the price prediction turns out to be accurate.

The global bank placed its bullish thesis after Azure’s earnings beat, as revenues grew by 43% and Wall Street estimates it could go beyond 45% in the next quarter. It also gave Microsoft stock a strong buy rating, estimating that its Q3 revenues will comfortably exceed expectations. Citi also noted that the software giant is giving customers access to its multiple AI models, which is among the reasons for its strength.