How much has Microsoft stock lost this year?

Microsoft stock has lost about 20% of its value year-to-date.

Why is Bank of America still optimistic on Microsoft?

Analysts believe the growth of Azure and AI businesses is not reflected in the current stock price and expect improvement after earnings.

How did Nvidia perform compared to Microsoft?

Nvidia continued to climb while Microsoft declined, widening the performance gap between the two largest tech companies.

Bank of America Doubles Down on Microsoft Stock Ahead of Earnings

Bank of America raised its price target on Microsoft (MSFT) stock ahead of earnings, reaffirming a Buy rating. The stock has lost about 20% of its value this year while Nvidia (NVDA) continued to climb.

July 20, 2026

2 min read

Source: TheStreet

Key Numbers

price target

to be confirmed

rating

Buy

Bank of America analysts raised their price target on Microsoft (NASDAQ: MSFT) and reiterated a Buy rating ahead of the company's Q4 earnings report. This comes despite the stock being one of the worst-performing large-cap tech stocks in 2026, shedding roughly a fifth of its value year-to-date.

Rating Change

Bank of America maintained a Buy rating on Microsoft and raised the price target, though specific figures were not disclosed in the report. The stock currently trades well below its previous highs.

Analyst Rationale

Analysts believe Microsoft's decline does not reflect the strength of its core business, particularly the continued growth of Azure cloud platform and AI operations. They expect Q4 earnings to trigger a re-rating of the stock.

Context

In contrast, Nvidia (NASDAQ: NVDA) continued its upward trajectory over the same period, widening the performance gap between the two largest tech companies. The broader market also recovered from its early-year lows.

What to Make of It

Bank of America's positive recommendation reflects confidence in Microsoft's long-term prospects despite near-term weakness. Investors are awaiting earnings results to see if they will support this optimistic view.

Frequently Asked Questions

Bank of America maintained a Buy rating on Microsoft and raised its price target ahead of Q4 earnings.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.