When you buy through affiliate links in our content, we may earn a commission at no extra cost to you. Learn Microsoft (MSFT) stock hit an all-time high in 2024, but investors still have concerns about how much money is being spent on artificial intelligence.
The tech giant, which is the world’s third largest company with a $3.09 billion market cap, has seen its share price rise 26% over the year to October 10, 2024.
But is now the right time for investors to get involved? Can we expect the MSFT stock price to soar even higher over the coming months?
In our MSFT stock forecast, we look at the major price drivers behind the bullish MSFT price action and consider analysts’ Microsoft stock expectations.
Key Takeaways
- Microsoft’s stock price hit an all-time high of $466.73 on July 5, 2024, due to its association with OpenAI and the release of AI-enhanced Microsoft 365 Copilot.
- Microsoft’s latest results revealed that revenue had increased 15% to $64.7 billion in the fourth quarter ended June 30, 2024.
- Wall Street analysts rate the stock as a ‘moderate buy’ according to the views of 32 analysts, compiled by MarketBeat.
- The consensus view of analysts is that the stock price could rise by up to 20% over the coming year from its closing price of $415.84 on October 10, 2024.
- Microsoft is still the world’s third-largest company with a market capitalization of just over $3 trillion.
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Summary of the Latest Microsoft (MSFT) Stock Predictions
| Microsoft Stock Forecast (as of October 11, 2024) | 1-Year Forecast | 2026 (January) | 5-Year Forecast to October 2029 |
|---|---|---|---|
| MarketBeat | $493.47 | – | – |
| WalletInvestor | $522.91 | $563.75 | $944.85 |
| TipRanks | $503.13 | – | – |
| GovCapital | $259.44 | $209.37 | $41.04 |
| Coincodex | $523.71 (January 2025) | $659.38 | $1,316.03 |
Microsoft Stock Analysis: Stellar MSFT 1-Year Performance
The MSFT stock price has risen 26% to $415.84 over the 12 months to October 10, 2024 and almost 11% since the start of this year.
However, it’s been more of a volatile period than the headline figures would suggest, given the MSFT stock price is way off the all-time high of $466.73 on July 5, 2024.
The latest bull run for the firm Bill Gates founded nearly 50 years ago in 1975 has followed widespread enthusiasm for anything related to AI.
This has resulted in a strong year for the so-called ‘Magnificent Seven’ megacap tech names that include Alphabet (GOOGL), Apple (AAPL) and Tesla (TSLA).
The Latest Microsoft News & Key Stock Price Drivers
An important element of any Microsoft stock forecast is looking at what has been happening at the company in recent months. Here is some of the latest Microsoft news.
Dividend & Share Repurchase Program
Microsoft announced in mid-September 2024 that its board of directors had declared a quarterly dividend of $0.83 per share, an increase of up to 10% over the prior quarter.
It also approved a new program with no expiration date authorizing up to $60 billion in share repurchases.
In addition, the company announced the date for the 2024 Annual Shareholders Meeting, to be held on December 10, 2024.
Strong Quarterly Results
Microsoft announced revenue had increased 15% to $64.7 billion in the fourth quarter ended June 30, 2024.
It also revealed a 10% rise in net income to $22 billion, as well as a similar rise in the diluted earnings per share that went up to $2.95.
Satya Nadella, the company’s chairman and chief executive, attributed the strong performance to Microsodt’s innovation and the trust customers place in it.
“As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era,” he said.
The company also recapped the major product releases and enhancements that were released in the fourth quarter.
Fiscal Year 2024 Results
Microsoft also revealed strong fiscal year 2024 results, with revenue up 16% to $245.1 billion and operating income of $109.4 billion.
It also noted that net income came in at $88.1 billion, representing an increase of 22%, while diluted earnings per share was up a similar amount at $11.80.
In a statement, Amy Hood, executive vice president and chief financial officer, said: “We closed out our fiscal year with a solid quarter, highlighted by record bookings and Microsoft Cloud quarterly revenue of $36.8 billion, up 21% year-over-year,” she said.
Investing in AI & Japan
Microsoft has declared its plan to invest $2.9 billion over the coming two years to enhance its hyper-scale cloud computing and artificial intelligence capabilities in Japan. It’s the largest ever investment the company has made in the country.
Additionally, the company aims to deliver AI education to more than three million people in Japan within the next three years. Microsoft also intends to establish its inaugural Microsoft Research Asia laboratory in Japan and intensify its cybersecurity partnership with the Japanese government. Similar AI education schemes are planned in the UK, India and elsewhere.
Microsoft Stock Forecast: Analyst Views
Next we’ll look at the Microsoft stock projections of analysts as we examine the outlook for Microsoft stock.
Danni Hewson, head of financial analysis at AJ Bell, believes there have been positives and negatives for Microsoft investors in 2024.
She told Techopedia:
“Microsoft has stumbled a little under the weight of expectation with its last earnings update failing to deliver on lofty cloud goals.”
It means that investors will be keeping a close eye on the Azure numbers after Microsoft’s solid cloud computing arm failed to meet expectations for the first time in a number of years.
“Shares in the company have actually dipped since the beginning of July, although they’re still up on the start of the year, with investors nervous about the level of spend on AI that many tech giants have maintained as they race to dominate the exciting and potentially lucrative space.”
Hewson pointed out that Microsoft hasn’t followed the same trajectory as record-breaking US indices in spite of the falling cost of borrowing.
“Microsoft’s boss has been successful in selling the company’s strategy to investors and Satya Nadella’s words about the next steps are always as important as the numbers themselves,” she added.
Dan Romanoff, a senior equity research analyst at Morningstar, raised his Microsoft price target from $435 to $490 after the company’s good quarter.
In his most recent MSFT stock forecast, he declared the key takeaway from the results was guidance that called for Azure revenue to accelerate in the second half of the year.
“We see results reinforcing our long-term thesis, which centers on the proliferation of hybrid cloud environments and Azure,” he wrote. “The firm continues to use its on-premises dominance to allow clients to move to the cloud at their own pace.”
Romanoff also believes near-term demand is good.
“Commercial bookings grew 19% year-over-year in constant currency based on strength in large Azure deals, while remaining performance obligations increased 20% year-over-year to $269 billion,” he explained.
He also pointed out that renewals remained strong, which he believes is partly driven by “high interest in AI” and consistently good execution.
Wedbush’s Dan Ives, who recently raised his Microsoft share price forecast to $550, previously declared AI as an investable theme for the coming years, comparing it to the release and mass adoption of Windows 95. He wrote:
“We continue to believe this is a ‘1995 Moment’ as this AI Revolution plays out across the tech ecosystem over the coming years with Nvidia/Jensen and Microsoft leading the way as this $1 trillion AI tidal wave hits the shores of the tech world.”
Latest Microsoft Stock Predictions for 2024, 2025 & 2030
So, is Microsoft a buy, hold, or sell? Here we outline the various Microsoft stock predictions of the analyst community.
Microsoft stock was rated a ‘moderate buy’ as of October 11, 2024, according to the views of 32 Wall Street analysts compiled by MarketBeat. All but two see it as a ‘buy,’ with the remaining analysts having ‘hold’ recommendations.
- Their consensus one-year Microsoft (MSFT) stock forecast for 2024/2025 is for the price to rise 18.67% to $493.47.
- The highest projection is $600.00, while the lowest estimate warns of a drop to $375.
However, others are more optimistic. A consensus MSFT price target from analyst views compiled by TipRanks puts the stock as a ‘strong buy’ with a potential 20.99% upside, putting the Microsoft future stock price at $503.13.
The following table shows the latest analysts’ Microsoft stock predictions.
| Date | Brokerage | Action | Rating | Price Target | Percentage Change |
|---|---|---|---|---|---|
| 10/10/2024 | The Goldman Sachs Group | Lower Target | Buy ➝ Buy | $515.00 ➝ $500.00 | +19.77% |
| 10/8/2024 | Truist Financial | Reiterated Rating | Buy ➝ Buy | $600.00 ➝ $600.00 | +44.91% |
| 10/8/2024 | Oppenheimer | Downgrade | Outperform ➝ Market Perform | ||
| 9/23/2024 | DA Davidson | Downgrade | Buy ➝ Neutral | $475.00 ➝ $475.00 | +9.13% |
| 9/17/2024 | Morgan Stanley | Reiterated Rating | Overweight ➝ Overweight | $506.00 ➝ $506.00 | +16.50% |
| 7/31/2024 | UBS Group | Lower Target | Buy ➝ Buy | $520.00 ➝ $510.00 | +22.54% |
| 7/31/2024 | Wedbush | Reiterated Rating | Outperform ➝ Outperform | $550.00 ➝ $550.00 | +32.15% |
| 7/31/2024 | Royal Bank of Canada | Reiterated Rating | Outperform ➝ Outperform | $500.00 ➝ $500.00 | +19.52% |
| 7/31/2024 | Piper Sandler | Reiterated Rating | Overweight ➝ Overweight | $485.00 ➝ $485.00 | +14.68% |
| 7/31/2024 | Citigroup | Lower Target | Buy ➝ Buy | $520.00 ➝ $500.00 | +18.23% |
| 7/31/2024 | Wells Fargo & Company | Boost Target | Overweight ➝ Overweight | $500.00 ➝ $515.00 | +21.77% |
| 7/18/2024 | TD Cowen | Boost Target | Buy ➝ Buy | $470.00 ➝ $495.00 | +11.61% |
Source: MarketBeat as of October 11, 2024
Elsewhere, the Microsoft stock forecast 2025 of algorithm-based WalletInvestor is even more bullish, putting the stock at $522.91 in 12 months’ time.
It also has a five-year MSFT stock forecast that has the stock price reaching $944.85, which is 127% higher than the $415.84 closing price on October 10, 2024.
Finally, another algorithm-based prediction platform, GovCapital, expressed the most pessimistic Microsoft stock long-term forecast.
According to its Microsoft stock prediction 2025, MSFT stock could fall to $259.44 over the next year.
Analysts and algorithm-based prediction platforms refrain from giving longer-term price targets. Therefore, Microsoft stock price prediction 2030 is not readily available.
The only one we could find was from Coincodex. This suggested the price would be at $1,663.42 by January 2030.
Note that analysts’ and algorithm-based projections might prove to be wrong.
Is MSFT a Good Buy?
It’s essential to get the correct information at the right time before buying MSFT. A tool that has stood out in the market is Benzinga Pro. Its lightning-fast newsfeed is particularly valuable for Microsoft stock analysis, which delivers exclusive market-moving stories before they hit mainstream media.
The platform’s sentiment indicators can help investors gauge the potential impact of Microsoft-related news on stock movement. At the same time, the audio squawk feature ensures you never miss critical updates about the stock, even when you’re away from your screen.
For day traders focused on Microsoft’s stock performance, Benzinga Pro’s advanced scanner helps identify technical patterns and trading opportunities with customizable filters for price action, volume, and market cap.
The community aspect adds another dimension through its chatroom, where traders discuss a stock’s performance and share insights. With plans starting at $37/month and scaling up to $197/month for the Essential package, Benzinga Pro offers a cost-effective solution for serious investors looking to make informed decisions about Microsoft stock. The platform’s 14-day free trial period allows users to test these features firsthand before committing.
The Bottom Line: Should I Invest in Microsoft?
Drawing the conclusion from our Microsoft stock outlook, investors can see that Microsoft’s stock has enjoyed strong gains in 2024, driven by its collaboration with OpenAI and the launch of the AI-powered Microsoft 365 Copilot.
However, concerns remain about the amounts being spent on AI and these fears are likely to affect long-term Microsoft’s stock price prediction 2030.
A lot will depend on how the company performs over the next six months and the amount of demand enjoyed by Microsoft Azure, its cloud computing platform.
Looking forward, the good news is that stock market analysts remain optimistic about the company’s prospects and believe the share price could rise over the coming year.
Of course, it’s vitally important to do your research, consider the market context, and consult with a financial advisor to make an informed decision that aligns with your investment objectives.
Do your own research and always remember your investment decision depends on your attitude to risk, your expertise in the stock market, the spread of your portfolio, and how comfortable you feel about losing money.
The information in this article does not constitute investment advice and is meant for informational purposes only.
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References
- Microsoft (MSFT) – Market capitalization (Companiesmarketcap)
- Microsoft – 38 Year Stock Price History | MSFT | MacroTrends (Macrotrends)
- Microsoft announces quarterly dividend increase and new share repurchase program – Stories (Microsoft)
- FY24 Q4 – Press Releases – Investor Relations – Microsoft (Microsoft)
- Microsoft Quarterly Highlights, Product Releases and Enhancements (Officeapps)
- Microsoft to invest US$2.9 billion in AI and cloud infrastructure in Japan while boosting the nation’s skills, research and cybersecurity – Microsoft Stories Asia (Microsoft)
- Microsoft (MSFT) Stock Forecast and Price Target 2024
(Marketbeat) - Microsoft (MSFT) Stock Forecast, Price Targets and Analysts Predictions – TipRanks.com (Tipranks)
- Microsoft Stock Forecast: up to 522.917 USD! – MSFT Stock Price Prediction, Long-Term & Short-Term Share Revenue Prognosis with Smart Technical Analysis (Walletinvestor)
- Oracle Stock Forecast: up to 184.390 USD! – ORCL Stock Price Prediction, Long-Term & Short-Term Share Revenue Prognosis with Smart Technical Analysis (Walletinvestor)
- Microsoft Corporation (MSFT Stock Forecast) price prediction is 250.88 USD. The price forecast is 250.88 for 2025 October 11, Saturday; and 32.84 USD for 2029 October 11, Thursday. (Gov)
- Microsoft (MSFT) Stock Forecast & Price Prediction 2025, 2030 | CoinCodex (Coincodex)
