This Microsoft Analyst Expects 2026 To Be A 'Big AI Driven Growth Year' That Will Surprise Investors

Microsoft Corp (NASDAQ:MSFT) is preparing for a significant AI-driven shift heading into 2026.

This shift will make the company "one of our favorite large cap tech names to own," according to Wedbush.

The Microsoft Analyst: Analyst Dan Ives reaffirmed an Outperform rating and a $625 price target.

The Microsoft Thesis: Investors who are skeptical of Microsoft and its “AI-driven” growth profile may be proved wrong. Ives says this “hyperscaler cloud stalwart is in the sweet spot of enterprise strategic AI deployments.”

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The Street seems to be underestimating Microsoft's Azure growth story, he explains. The current share price does not reflect "the next wave of cloud and AI growth in 2026,” he adds. Microsoft boasts a “strong competitive cloud edge in its massive installed base.”

The latest field checks indicate that more than 70% of the company's installed base will be "on this AI functionality for the enterprise/ commercial" in the next three years, Ives mentioned. This changes the landscape and Microsoft's growth trajectory going forward, he added.

MSFT Price Action: Shares of Microsoft had declined by 0.26% to $484.64 at the time of publication on Monday.

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