Bernstein Raises Microsoft Price Target to $646

Bernstein analyst Mark Moerdler raised the price target for Microsoft Corporation (NASDAQ:MSFT) to $646 from $641, while reiterating an "Outperform" rating. The adjustment comes after the company reported strong fiscal Q3 2026 results that surpassed consensus estimates on key metrics.

Rating Change

• Previous Rating: Outperform with a $641 price target.
• Current Rating: Outperform with a $646 price target.

Analyst Rationale

Moerdler noted that Microsoft's Q3 results were strong, beating consensus expectations on major metrics. He believes the company is well-positioned to capitalize on growing demand for AI solutions, which bolsters its future growth prospects.

Context

This revision comes amid heightened investor interest in technology stocks, particularly those tied to artificial intelligence. Microsoft (MSFT) is considered one of the most promising AI stocks by many analysts. The stock is trading near all-time highs, with a generally positive outlook from Wall Street.

What This Means

While the price target increase reflects analyst confidence in Microsoft's (MSFT) future performance, especially its AI focus, investors should consider potential risks such as high valuation and intense competition in the tech sector.