Microsoft Shares Seen Reaching $650 Before 2028

Microsoft (NASDAQ:MSFT) closed its biggest fiscal year ever, with annual revenue reaching $331 billion and Azure alone surpassing $100 billion. Despite this impressive performance, shares have barely moved in 2025, gaining only 2% on the year.

The disconnect between Microsoft's growing business fundamentals and stagnant share price has raised questions about the company's potential to reach a target price of $650. Analysts have predicted that MSFT can hit this mark by 2028, with some even suggesting it could happen before then.

However, reaching $650 would require a significant gain of 32.2% from Microsoft's current share price of $491.71. This means the company's forward P/E ratio would need to expand to 33x, which is not an impossible feat given its strong earnings growth of 31.7% year-over-year.

Microsoft's CFO Amy Hood stated that 'demand continues to exceed available supply', and Satya Nadella expressed confidence in the company's ability to drive durable long-term growth.