Microsoft Stock Forecast Rises on AI-Driven Optimism

Microsoft shares have surged past $500, marking a 5.9% gain over the past month as analysts revise targets upward. Melius Research now projects a $595 price target, citing AI-powered cloud infrastructure demand as a key catalyst. The company's strategic pivot toward artificial intelligence—including workforce restructuring and its OpenAI partnership—has drawn investor confidence despite broader market headwinds.

Tech peers Amazon and Alphabet mirror this resilience, with shares climbing 6% and 4% respectively over the same period. Their parallel investments in AI compute infrastructure underscore a sector-wide bet on machine learning as the next growth frontier. Microsoft's dual role as both collaborator and competitor with OpenAI remains a focal point for long-term valuation debates.