Amid the ongoing rush to invest in the technology sector, Wall Street has seen a plethora of stocks dominate over the year. With AI and cloud-based computing driving significant demand, there is no doubt that the coming year will be filled with high-potential companies getting a surge in stock value. Chief among them could be Microsoft (MSFT), with the stock seemingly bound for a $500 all-time high in 2025.

The highest closing price for the Windows software developer was $465, set in the summer of 2024. However, that could be poised to be just the beginning of a dominant year for the company. Although competition has never been tougher, it may be set with a leg up compared to the competition.

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Microsoft to $500? Why the Stock Could be the Biggest Winner of 2025

For much of the last two years, Wall Street has become increasingly interested in developing technology. With the emergence of OpenAI’s ChatGPT, the advancements in artificial intelligence has led investors dreaming of endless possibilities. Therefore, demand has surged with investments into these potential utilities skyrocketing.

There has been no bigger winner in this reality than Nvidia (NVDA). That hasn’t deterred companies like Amazon (AMZN), Apple (APPL), and Alphabet (GOOGL) from attempting to make their own mark. Yet none may be in a better position to capitalize on booming industries than Microsoft (MSFT), which appears bound for a $500 high in 2025.

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According to recent stock projection platforms, Microsoft is looking at a one-year price target at the $500 level. Moreover, that would be an increase of more than 10% from its current position. The outlook reinforces the buy rating, as the stock is looking to only go higher from there.

Microsoft Azure, its immensely popular cloud company, is projected to continue its growth rate of more than 20%. Moreover, earnings for the stock are expected to arrive at $11.80. Additionally, the five-year outlook is even more impressive. Specifically, the stock is projected to near highs of $633 entering 2026.

The key drivers for the increased stock value are its ongoing business processes, businesses such as Microsoft Office, personal computing, and its cloud/AI businesses. The firm had spent $13 billion investing in OpenAI, and that should pay off in the next several years. Indeed, the firm had a two-year head start and is expected to lead a surging AI sector throughout 2025. However, it should have a record year on the horizon for Microsoft.