Wells Fargo Lifts Microsoft Stock Target to USD 725.00 on AI Growth Catalysts
Wells Fargo has increased its target price for Microsoft stock to USD 725.00 from USD 700.00, citing three key catalysts for the AI giant's growth: AI monetization, upcoming product information, and new segment reporting.
The analyst, Michael Turrin, pointed to several factors supporting this thesis, including the November Ignite conference and clearer Azure disclosures as evidence of commercial progress.
Microsoft has already demonstrated strong revenue growth, with its fiscal fourth quarter 2026 results exceeding expectations, generating USD 90.01 billion in revenue, up 18.00 percent year over year.
The company's operating picture carries a risk, however, as it invests heavily in data centers, servers, and AI infrastructure, and stronger Azure growth must translate into revenue and cash generation rather than just higher capacity.