One Analyst Sees Microsoft Soaring 90%. Here’s What the Market Might Be Missing

Microsoft (NASDAQ:MSFT | MSFT Price Prediction) shares are really starting to come in, and with the stock lower than many of us thought possible going into 2026, questions linger as to how the enterprise software titan can hit bottom. As the pain threshold of some gets exceeded, there’s really no telling how low the high-tech blue chip can go.

With hundreds of billions of market cap being wiped out and the valuation multiple contracting to levels that are not only reasonable but perhaps shockingly low, especially with the AI boom in play, perhaps the case for buying into the fear is more than warranted, even though the name might stay oversold for a while longer.

In any case, the sell-side analysts still seem to believe in the name. And, in my view, the swelling upside based on their price targets might offer a reason to buy rather than sell. Of course, it gets that much harder to buy when so many great companies are being marked down viciously. And after a brutal month of March, it feels like stocks will just keep doing more of the same going into April, the summer season, and maybe the rest of the year, if not longer.

It’s easy to second-guess your decision to get in when you’re dealt a 10% plunge after you’ve bought the dip. In bear markets, dip-buying can only take you so far. At 19.3 times forward price-to-earnings (P/E), though, I think it’s hard to argue that Microsoft stock hasn’t looked this cheap in a number of years.

Whether you’re betting on a big CapEx cut by the midpoint of the year or AI-driven returns to refuel enthusiasm for the exhausted AI trade, I do think there are many ways that Microsoft and the Mag Seven can march higher again. 

This bull isn’t giving up on Microsoft stock

Having a look at the analyst crowd, a vast majority are still sticking with their buy ratings. And while many didn’t see the latest plunge coming, I do think that the large price targets might offer a glimpse of the upside to expect once things go right for a change. Sachin Mittal over at DBS Bank is staying bullish on the enterprise titan behind Copilot and other AI innovations, with a Street-high target of $678.00.

That’s a very specific price target, and one that might be based on factors that the market is missing in a moment of panic and profound geopolitical and macro uncertainty. Such a target entails a gain of more than 90% from here. That’s quite unreal for a blue chip that most investors already have a decent chunk of exposure to. Perhaps the best opportunities really are hiding in plain sight.

Either way, Mittal sounds pretty upbeat about the potential of Azure AI. The intelligent cloud is growing quite quickly, but who knows if it’ll accelerate the pace to justify the year’s CapEx. If Microsoft really does have timely earnings power, I wouldn’t be surprised if the latest valuation reset is “corrected” again, but to the upside.

Could Microsoft shares be more deserving of the multiple that investors once paid in the back half of last year?

Possibly. And while some bulls may lower the bar on their price targets after the fact, I certainly wouldn’t lose sight of the long-term AI-driven narrative, which will ultimately tell us what the stock ought to be worth. Personally, I think Microsoft has options and opportunities as the market looks to discount AI rather than assign a premium to it.