What is Wedbush’s latest MSFT price target and rating?

Wedbush’s Dan Ives reiterated an Outperform rating with a $625 Microsoft stock price target. That implies roughly 28% upside from about $488. The call cites stronger Azure and Copilot adoption and argues the market still underestimates Microsoft’s AI monetization potential heading into FY26.

Why is Microsoft stock moving on AI headlines?

AI updates affect growth assumptions for Azure and Copilot. Wedbush estimates AI could add about $25 billion to FY26 revenue, which lifts confidence in long-term cash flows. When investors see higher attach rates and usage, sentiment improves and supports Microsoft stock at current valuation levels.

Is Microsoft stock expensive at current levels?

MSFT trades at 34.69 times trailing earnings and 12.35 times sales, with a 0.70% dividend yield. That is a premium to many large caps. Bulls point to strong margins and AI growth, while bears note high capex needs and competition. Execution on AI monetization will need to justify the multiple.

What near-term catalysts should investors watch?

Focus on Azure AI growth, Copilot seat counts, gross margin, and any updates on data center capex. The next earnings date is January 28, 2026. Guidance around FY26 revenue and AI contribution will matter most, along with commentary on enterprise budgets and competitive dynamics.

Global Market Insights

MSFT Stock Today, December 24: Wedbush Sets $625 PT on AI Growth

ByHuzaifa Zahoor December 25, 2025December 25, 2025

Microsoft stock is in focus today as Wedbush’s Dan Ives reiterated an Outperform rating with a $625 MSFT price target, citing Azure AI growth and strong Copilot adoption that could add about $25 billion to FY26 revenue. Shares of MSFT recently traded near $488.02, within a session range of $484.83 to $489.16, and a market cap of $3.63 trillion. With a 52-week high of $555.45 and low of $344.79, investors are weighing AI monetization, near-term technicals, and valuation into the next earnings update.