Morgan Stanley Elevates Microsoft to Top Large-Cap Software Pick with $625 Price Target

Morgan Stanley has positioned Microsoft as its top large-cap software selection, raising the price target to $625 from $582 while maintaining an Overweight rating. Analyst Keith Weiss highlights a 23.3% upside potential, driven by the company's leadership in AI, cloud migration trends, and cybersecurity dominance.

Microsoft's valuation at 26x forward earnings appears attractive compared to the sector average of 32x. The tech giant has secured the largest wallet share gains in generative AI spending, reinforcing its competitive edge. Wall Street consensus remains overwhelmingly bullish, with 33 Buy ratings and a single Hold.

The clarified relationship with OpenAI alleviates prior concerns, further strengthening Microsoft's positioning in the rapidly evolving AI market. Year-to-date, Microsoft shares have surged over 20%, outpacing many technology peers.