In what is a surprising move, Microsoft (MSFT) has seen its price target drop to $470. Indeed, research firm Piper Sandler gave the company an ‘Overweight’ rating in a recent note. The move is far from consensus, as the software company still has massive potential to surge.

Its focus on AI and cloud development is key for Microsoft. As Nvidia (NVDA) and other AI-focused firms have skyrocketed, MSFT presents a clear opportunity, especially if you believe in the growth of the industry. With earnings season approaching, it’s an important time for the company to reestablish its dominance.

Also Read: Microsoft: AI, Cloud Focus has MSFT Eyeing Massive Start to 2025

Microsoft Gets $470 Price Target: Is MSFT Still a Tech Powerhouse for October?

There are few high-profile stocks that have the kind of upside Microsoft does. One of the strongest brands in the tech sector, they have maneuvered brilliantly amid a shifting market. When demand for AI grew, they embraced the shift. Moreover, when cloud computing became a necessity, Microsoft Azure represented one of the companies thriving the most.

Yet, not all experts have the same perspective. Analysts at Piper Sandler are questionable on the stock. Specifically, Microsoft has seen the MSFT target price drop to $470 from the research firm, giving the stock an ‘Overweight’ rating. The reasoning may be in connection to an important report for the firm.

Amid Wall Street’s earnings season, Microsoft is set to unveil its 2924 Q2 FY report. That will have its cloud-computing business be the central focus. Specifically, because of the success that the growing platform could have on the future of the company.

Also Read: Microsoft: MSFT to Expand Cloud Service Amid 23% Revenue Surge

During Q4, Azure revenue increased a remarkable 29% year over year. Moreover, that was a clear uptick from the prior-year quarter’s 26%. Now, investors are projecting similar outcomes from the October report, verifying the importance of Azure to its success.

That will take precedence over all other figures. The company has made substantial AI investments, including the $10 billion investment into OpenAI. Yet, its cloud-based programming is key because of its current position in the market. Another surging growth trajectory could be massive for MSFT. However, a slight setback could see the stock price take a notable hit.