Shares in Microsoft (MSFT) stock are down 10% in the past week, as AI and tech stocks suffer from a significant pullback to begin June. Amid a bearish backdrop for the broader market, Microsoft has given up much of last month’s gains early in June’s trading. As of this writing, the stock is down roughly 7% this month. Meanwhile, the S&P 500 is down 2.6%, and the Nasdaq Composite is off 4.7%.

Despite the recent dip, Wall Street remains bullish on MSFT, with several firms holding buy/overweight ratings on the stock. On June 1, Wells Fargo analyst Michael Turrin lifted its price objective on the company’s stock to $650 from $625 and kept an “Overweight” rating on the shares. As per the analyst, investor concerns related to Microsoft’s AI strategy have gotten louder after its latest earnings report. However, the firm believes that Microsoft is better positioned at the software layer than the market is currently realizing.

In addition to Wells Fargo, Citizens has also initiated coverage of Microsoft (MSFT). The bank hit MSFT stock with an “Outperform” rating and a price objective of $550. Based on 37 Wall Street analysts offering 12-month price targets for Microsoft in the last 3 months, the average price target is $557.64, with a high forecast of $680.00 and a low forecast of $400.00. The average price target represents a 35.10% change from the last price of $412.76.

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With economic activity looking relatively resilient, the Federal Reserve may prioritize combating inflation and choose to raise interest rates. Growth stocks tend to perform much better in a low-interest rate environment, and it’s possible that a rate hike could have a substantial bearish impact on Microsoft and other big tech names. On the other hand, if Wells Fargo’s price prediction is proven, an investment of $1,000 in Microsoft (MSFT) could turn into $1,400+ in the coming months.