Truist Securities Keeps Buy Rating on Microsoft and Increases Price Target to $675
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
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Should l Buy MSFT?
Source: Benzinga
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 392.740
Low
500.00
Averages
631.36
High
678.00
Current: 392.740
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft's Long-Term Potential in Quantum Computing
- Significant Cloud Growth: In Q2 of fiscal 2026, Microsoft reported a 16.7% year-over-year revenue increase to $81.3 billion, with cloud services contributing $51.5 billion, up 26%, indicating strong market demand and sustained growth potential.
- Increased Quantum Investment: Microsoft is heavily investing in its quantum computing ecosystem, introducing the Majorana 1 quantum processor aimed at enhancing computational stability and reducing errors, laying the groundwork for future commercialization.
- Data Center Expansion: The company added nearly 1 gigawatt of data center capacity in Q2 to address the challenge of Azure service demand exceeding supply, demonstrating its ongoing investment and strategic positioning in cloud infrastructure.
- Rapid AI Application Adoption: Microsoft’s Copilot user base surged over 160% year-over-year to 15 million paid users, showcasing its ability to successfully leverage AI in enterprise workflows, further driving revenue growth.
See More
Meta Secures AI Patent for Digital Afterlife, Sparking Debate
- AI Digital Afterlife Patent: Meta has secured a patent in December 2025 for a large language model designed to simulate user online activity, utilizing past posts, likes, and comments, potentially including audio or video data, to keep user profiles active after death, although the company has no current plans to deploy this technology.
- Social Reactions and Criticism: Cyberpsychologist Elaine Kasket and sociologist Sherry Turkle have expressed concerns that this concept reframes death as a platform issue, potentially complicating the grieving process and creating a 'perpetual fantasy life' that disrupts emotional experiences for users.
- Technical Background and Market Trends: Meta's CTO Andrew Bosworth has previously noted that inactivity after death affects user experience, which partly informed the patent's rationale, while similar technological attempts date back to 2017 when Microsoft applied for a chatbot patent based on personal data.
- Global Patent Dynamics: As AI rapidly evolves, the reliance on patents is shifting, with Mark Cuban arguing that companies may increasingly depend on trade secrets instead of patents, especially as China has become the world's largest source of patent applications, accounting for 27% of global filings, while the U.S. share has declined to 20%.
See More
Microsoft CEO Warns of Imminent AI-Driven Job Displacement
- Job Market Transformation: Microsoft CEO Satya Nadella warns that AI-driven job displacement is imminent, particularly in software development, with an estimated $150 billion to $250 billion in labor value migrating to AI compute, posing risks for companies and workers who ignore this shift.
- Need for Skill Transformation: Nadella emphasizes that understanding new tools and skills is the best protection against job loss, drawing parallels to the unforeseen proliferation of personal computers, suggesting that AI will similarly transform the workforce, requiring proactive adaptation from employees.
- Widespread Impact Warning: Anthropic engineer Boris Cherny cautions that the shift will extend to nearly all computer-related jobs, with many workers facing a painful transition, particularly those who are disengaged or idly sitting in their roles, making them ripe for disruption.
- Social Control and Technology Acceptance: Nadella notes that rapid waves of unemployment will be challenging, but political systems and elections provide society with control over outcomes, asserting that the public will not accept technology that fails to deliver broad benefits.
See More
U.S. Stock Futures Decline Amid Escalating Middle East Conflict
- Middle East Escalation: The U.S. and Israel's airstrikes on Iran, resulting in the death of Supreme Leader Ali Khamenei, have heightened market concerns over soaring energy prices, with oil prices rising by 2.2%, potentially driving inflation higher and impacting Federal Reserve policies.
- Market Reaction: Dow E-minis fell by 494 points (1.01%), S&P 500 E-minis dropped by 72.5 points (1.05%), and Nasdaq 100 E-minis decreased by 332.75 points (1.33%), reflecting investor anxiety about the future economic outlook amid geopolitical tensions.
- Airline Stocks Hit: Travel and airline stocks suffered significantly due to flight cancellations and closures of Middle Eastern airspace, with rising jet fuel costs adding to investor unease and exacerbating market volatility.
- Fed Policy Outlook: As inflation readings continue to pile up, expectations for the Fed to raise interest rates have strengthened, particularly given the increasing divisions among Fed officials regarding the path of rates, prompting investors to closely monitor upcoming economic data.
See More
S&P: SOFTBANK GROUP'S INVESTMENT ASSET CREDIT QUALITY EXPECTED TO DECLINE.
- Credit Worthiness of SoftBank Group: S&P has indicated that the credit worthiness of SoftBank Group is likely to deteriorate.
- Investment Assets Impact: The decline in credit worthiness is expected to affect the value of SoftBank's investment assets.
See More
S&P Warns That SoftBank Group's Investment Portfolio Liquidity Will Decline Due to Increased Stake in OpenAI.
- Impact on SoftBank's Investment Portfolio: S&P indicates that the liquidity of SoftBank Group's investment portfolio is expected to decline.
- OpenAI's Growing Influence: OpenAI now accounts for a larger share of SoftBank's investment portfolio, contributing to the anticipated worsening of liquidity.
See More
Microsoft's Long-Term Potential in Quantum Computing
- Significant Cloud Growth: In Q2 of fiscal 2026, Microsoft reported a 16.7% year-over-year revenue increase to $81.3 billion, with cloud services contributing $51.5 billion, up 26%, indicating strong market demand and sustained growth potential.
- Increased Quantum Investment: Microsoft is heavily investing in its quantum computing ecosystem, introducing the Majorana 1 quantum processor aimed at enhancing computational stability and reducing errors, laying the groundwork for future commercialization.
- Data Center Expansion: The company added nearly 1 gigawatt of data center capacity in Q2 to address the challenge of Azure service demand exceeding supply, demonstrating its ongoing investment and strategic positioning in cloud infrastructure.
- Rapid AI Application Adoption: Microsoft’s Copilot user base surged over 160% year-over-year to 15 million paid users, showcasing its ability to successfully leverage AI in enterprise workflows, further driving revenue growth.
See More
Meta Secures AI Patent for Digital Afterlife, Sparking Debate
- AI Digital Afterlife Patent: Meta has secured a patent in December 2025 for a large language model designed to simulate user online activity, utilizing past posts, likes, and comments, potentially including audio or video data, to keep user profiles active after death, although the company has no current plans to deploy this technology.
- Social Reactions and Criticism: Cyberpsychologist Elaine Kasket and sociologist Sherry Turkle have expressed concerns that this concept reframes death as a platform issue, potentially complicating the grieving process and creating a 'perpetual fantasy life' that disrupts emotional experiences for users.
- Technical Background and Market Trends: Meta's CTO Andrew Bosworth has previously noted that inactivity after death affects user experience, which partly informed the patent's rationale, while similar technological attempts date back to 2017 when Microsoft applied for a chatbot patent based on personal data.
- Global Patent Dynamics: As AI rapidly evolves, the reliance on patents is shifting, with Mark Cuban arguing that companies may increasingly depend on trade secrets instead of patents, especially as China has become the world's largest source of patent applications, accounting for 27% of global filings, while the U.S. share has declined to 20%.
See More
Microsoft CEO Warns of Imminent AI-Driven Job Displacement
- Job Market Transformation: Microsoft CEO Satya Nadella warns that AI-driven job displacement is imminent, particularly in software development, with an estimated $150 billion to $250 billion in labor value migrating to AI compute, posing risks for companies and workers who ignore this shift.
- Need for Skill Transformation: Nadella emphasizes that understanding new tools and skills is the best protection against job loss, drawing parallels to the unforeseen proliferation of personal computers, suggesting that AI will similarly transform the workforce, requiring proactive adaptation from employees.
- Widespread Impact Warning: Anthropic engineer Boris Cherny cautions that the shift will extend to nearly all computer-related jobs, with many workers facing a painful transition, particularly those who are disengaged or idly sitting in their roles, making them ripe for disruption.
- Social Control and Technology Acceptance: Nadella notes that rapid waves of unemployment will be challenging, but political systems and elections provide society with control over outcomes, asserting that the public will not accept technology that fails to deliver broad benefits.
See More
U.S. Stock Futures Decline Amid Escalating Middle East Conflict
- Middle East Escalation: The U.S. and Israel's airstrikes on Iran, resulting in the death of Supreme Leader Ali Khamenei, have heightened market concerns over soaring energy prices, with oil prices rising by 2.2%, potentially driving inflation higher and impacting Federal Reserve policies.
- Market Reaction: Dow E-minis fell by 494 points (1.01%), S&P 500 E-minis dropped by 72.5 points (1.05%), and Nasdaq 100 E-minis decreased by 332.75 points (1.33%), reflecting investor anxiety about the future economic outlook amid geopolitical tensions.
- Airline Stocks Hit: Travel and airline stocks suffered significantly due to flight cancellations and closures of Middle Eastern airspace, with rising jet fuel costs adding to investor unease and exacerbating market volatility.
- Fed Policy Outlook: As inflation readings continue to pile up, expectations for the Fed to raise interest rates have strengthened, particularly given the increasing divisions among Fed officials regarding the path of rates, prompting investors to closely monitor upcoming economic data.
See More
S&P: SOFTBANK GROUP'S INVESTMENT ASSET CREDIT QUALITY EXPECTED TO DECLINE.
- Credit Worthiness of SoftBank Group: S&P has indicated that the credit worthiness of SoftBank Group is likely to deteriorate.
- Investment Assets Impact: The decline in credit worthiness is expected to affect the value of SoftBank's investment assets.
See More
S&P Warns That SoftBank Group's Investment Portfolio Liquidity Will Decline Due to Increased Stake in OpenAI.
- Impact on SoftBank's Investment Portfolio: S&P indicates that the liquidity of SoftBank Group's investment portfolio is expected to decline.
- OpenAI's Growing Influence: OpenAI now accounts for a larger share of SoftBank's investment portfolio, contributing to the anticipated worsening of liquidity.
See More
