BofA Lifts Microsoft Price Target to $600 Amid AI Growth

Bank of America Securities has raised its price target for Microsoft stock to $600 from $500, maintaining a Buy rating. The upgrade is based on the company's AI strategy and growth in its cloud business.

The firm cited Microsoft's fourth-quarter fiscal 2026 results as validation of its AI strategy, with Azure growth accelerating to 43% in the quarter. Paid Microsoft 365 Copilot seats exceeded 30 million, with net additions more than doubling quarter-over-quarter.

BofA Securities remains constructive on Microsoft's long-term positioning across AI infrastructure, models, and applications. The firm's new price target is based on 28 times its calendar year 2027 price-to-earnings estimate, up from 24 times previously.