Microsoft Corporation (MSFT) Down More Than 12% Since Q1 2026 Results

6 days ago 6

Talha Qureshi

Mon, November 24, 2025 astatine 7:58 AM CST 2 min read

Microsoft Corporation (NASDAQ:MSFT) is 1 of the Best Cloud Stocks to Buy Now. Microsoft Corporation (NASDAQ:MSFT) has declined much than 12.8% since its fiscal Q1 2026 results. However, Wall Street maintains a affirmative outlook connected the stock. On November 20, Gregg Moskowitz from Mizuho Securities reiterated a Buy standing connected the banal with a $640 terms target. On the aforesaid day, Karl Keirstead from UBS besides maintained a Buy standing connected the banal with a $650 terms target.

Analyst Keirstead sees beardown gross maturation prospects for Azure successful 2026, driven by caller AI capacity. He besides highlighted that the banal presently trades astatine a guardant aggregate of 42 times escaped currency travel and 25 times non-GAAP net per share. The terms people of $650 is based connected the anticipation that Microsoft Corporation’s (NASDAQ:MSFT) 2027 escaped currency travel aggregate volition beryllium 50x. Keirstead notes that this valuation volition look tenable if Azure sustains maturation successful the precocious 30% to debased 40%, on with non-GAAP EPS maturation of 20% to 25%.

In different news, connected November 18, Microsoft Corporation (NASDAQ:MSFT) announced a caller strategical concern with NVIDIA and Anthropic aimed astatine scaling the Claude AI exemplary connected Microsoft Azure. Management noted that Anthropic has agreed to acquisition $30 cardinal worthy of Azure compute capableness with the purpose of contracting further 1 gigawatt capacity. Moreover, Microsoft Corporation (NASDAQ:MSFT) besides aimed to put much than $5 cardinal successful Anthropic arsenic portion of the partnership.

Microsoft Corporation (NASDAQ:MSFT) is simply a starring exertion institution known for a wide scope of devices, software, and services. Some of the halfway offerings by the institution see productivity software, including Microsoft Office and Azure, the Windows operating system, and gaming devices.

While we admit the imaginable of MSFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.