Microsoft's stock price has fallen 10% over the past six months, but its outlook remains uncertain due to strong market optimism about artificial intelligence. The Azure cloud platform grew 40% year-over-year, and is expected to continue its growth momentum through 2026. Analysts point out that Microsoft is a major beneficiary of AI investments, including its partnership with OpenAI. Although target prices vary widely, most analysts' ranges are between $600 and $650, indicating room for upside from the current $454. Companies like Morgan Stanley have noted that software spending trends are improving, and CIOs expect Microsoft's growth rate to reach 7.3% in 2026.