Bank of America Upgrades Microsoft Stock Despite 20% Decline

Bank of America upgraded Microsoft (MSFT) from "Neutral" to "Buy," while keeping its price target unchanged, according to a report by analyst Brad Sills. The upgrade comes as Microsoft shares have fallen about 20% year to date, making it one of the worst-performing large-cap tech stocks in 2026.

Rating Change

• Previous Rating: Neutral
• New Rating: Buy
• Price Target: Not disclosed

Analyst Rationale

Analyst Brad Sills believes the current decline presents an attractive buying opportunity, especially as Microsoft continues to expand its AI business and grow Azure at a pace most cloud companies would envy. He noted that many investors have been sitting on the sidelines, which could lead to upward pressure when they return.

Context

Microsoft is one of the worst-performing large-cap tech stocks in 2026, down about 20% year to date. In contrast, the company continues to post strong growth in its cloud and AI businesses. No other analysts have issued similar comments yet.

What to Make of It

The upgrade from Bank of America reflects confidence in Microsoft's long-term prospects, but investors should be aware that the stock remains under near-term pressure. It is advisable to monitor market developments and the company's financial performance before making any investment decisions.