Oppenheimer Sees Microsoft Reaching $570 by 2027 Amid AI Growth

Oppenheimer, a prominent investment firm, has revised its price target for Microsoft to $570 per share by 2027. The update comes after Oppenheimer met with Microsoft management and expressed confidence in the software giant's growth prospects.

The analyst, Brian Schwartz, attributed the increased target to Microsoft's continued focus on controlling investments while expanding its AI business. He pointed to the momentum behind Azure and Copilot adoption as key contributors to the firm's outlook.

Schwartz also highlighted improving efficiency and tighter capital allocation at Microsoft, which he believes will support more predictable capital spending and positive free cash flow this year compared to other large cloud providers.

However, Schwartz did identify potential risks to the outlook, including AI-related disruption and companies bringing forward enterprise technology spending into the second half of 2026, which could slow Azure and Microsoft 365 growth in 2027. Lower cloud margins or weaker capital-spending efficiency could also pressure the shares.