Microsoft's Rally Skews Price Target, Leaving Investors Questioning Upside

The stock prices of four tech giants, Alphabet, Amazon, Meta Platforms, and Microsoft, have been affected by their high capital expenditures in the artificial intelligence (AI) race. In 2026, these stocks are lagging behind the S&P 500. However, analysts' price targets indicate that they will see solid gains over the next 12 months.

Microsoft's stock has had a significant rally from July 23 to August 7, rising by 31%. This has skewed its median price target of $555, making it appear as though it has limited upside potential. However, analysts expect this gain to be spread out over the next 12 months rather than occurring in just a few weeks.

Meta Platforms has the most favorable outlook among these four tech giants, with a median one-year price target of $750, representing a 26.6% gain from its August 7 closing price of $592.10. Alphabet and Amazon also have high price targets, $426.50 for Alphabet's Class C shares and $325 for Amazon shares, respectively.

Microsoft's current median price target is only 11% higher than its August 7 closing price of $499.99, but analysts may revise their targets as the stock continues to rally.