Wedbush Sees Microsoft’s AI Growth Outpacing Street Estimates
Wedbush analyst Dan Ives asserts Wall Street underestimates Microsoft's AI-driven growth potential, particularly in Azure and Copilot deployments. Recent customer adoption patterns suggest these platforms could contribute an additional $25 billion to fiscal 2026 revenue.
Microsoft shares trade at $485.92, reflecting a 16.1% year-to-date gain. Discounted cash FLOW analysis indicates a 19.2% undervaluation, with an intrinsic value of $601.65 per share. Ives maintains an Outperform rating and $625 price target, citing Azure's momentum as a key catalyst.
Bull and bear cases diverge sharply: AI adoption could drive valuations to $624.45, while skeptics flag infrastructure costs and competition for a $420 floor.