Microsoft (MSFT) stock hit an all-time high at $546 at the end of October, but has since failed to return to such high price points. At press time, shares are down 1% to $490 in the last 30 days. Analysts are hopeful that a bearish stock market is in the past, and 2025 could end with a solid rally for mag-7 stocks like MSFT entering 2026. Could such a rally send Microsoft shares back to $550?
Microsoft is one of the biggest players in the surging AI race, thanks in part to its early boosting of OpenAI’s ChatGPT. So far in December, though, MSFT has shed nearly 8% in a month. The downturn in Microsoft’s stock price comes after investors’ reaction to fresh concerns about the company’s AI revenue trajectory. Rumors were swirling around Wall Street that the tech giant could scale back on sales of key AI offerings. AI bubble concerns also remain a factor.
Furthermore, high spending and less sales is worrying investors as the investments don’t match the revenues. A handful of analysts have predicted that the AI bubble could burst soon and affect all tech giants, including Microsoft stock. If that happens, the bloodbath would be much more intense than the market has previously seen.
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At press time, Microsoft (MSFT) is trading in the middle of its 52-week range and above its 200-day simple moving average. Despite the bearish-sounding market, Bulls still dominantly hold the reins of Microsoft stock forecasts. Out of 62 analysts surveyed by CNN, none call the stock a sell. 98% call MSFT a buy, while the remaining 2% opt to label the stock a hold. Furthermore, several Wall Street analysts, including Bernstein, Evercore ISI Group, and Raymond James, have issued Outperform ratings. The price targets range from $600 to $650, suggesting confidence in further stock appreciation.
On the other hand, CoinCodex predictions suggest that the outlook is far more bearish. The analysts don’t see MSFT returning to above $540 until 2027, with 2026 being a year of losses. Should the AI bubble indeed burst, short-sellers may be at an advantage while MSFT investors could see big losses.
