Global investment bank and capital markets firm Jefferies has upgraded its Microsoft stock (NASDAQ: MSFT) price prediction to $675. That’s a bullish and ambitious forecast with an uptick of approximately 80%. MSFT opened Wednesday’s trading bell at $372.74 and remains bearish in the charts.

Jefferies price prediction on Microsoft stock comes at a time when the equity remains in the deep red. It is down nearly 27% in the last six months and is losing value every week. Anyone who took an entry position in 2026 is underwater with losses. However, the investment bank noted that the worst for MSFT is behind it and a rally is on the cards.

Also Read: Bank of America Gives Microsoft Stock a 31% Upside Target (MSFT)

Jefferies Price Prediction of $675: Why Microsoft Stock Could Reach The Target

The core reason provided by Jefferies that Microsoft stock could reach $675 is that its valuation is attractive and is relative to growth. The valuation of the firm stands at $2.84 trillion and could soar after the AI growth. In addition, the tech titan has positioned itself as a strong enterprise in AI with investments worth billions.

Jefferies also wrote that Microsoft stock is currently at a bargain with its price down 22% year-to-date. The earnings growth also saw an uptick with a surge of 28.85% in Q2 2026. The development highlights the company’s strong profit-generating capability, assuring investors of an upcoming bull run. This makes MSFT lucrative as it’s currently trading at the bottom of the barrel.

If Jefferies price prediction on Microsoft stock turns out to be accurate, an investment of $1,000 could balloon into $1,800. That’s phenomenal returns and is close to doubling investors’ money. The risk-to-reward ratio is high, and an investment now during its dip could prove beneficial. Accumulating MSFT during the upcoming dips stemming from the Middle East conflict is a better idea.