Deutsche Bank Reiterates Buy on Microsoft (MSFT) as CIO Survey Signals AI Momentum

Deutsche Bank reiterated its Buy rating on Microsoft Corporation (NASDAQ:MSFT) on June 26, stating that the stock is underappreciated. The bank's analysts highlighted that current AI businesses across the cloud providers they cover represent real value.

Rating Change

Deutsche Bank maintained its "Buy" rating on MSFT without changing the price target. The bank emphasized that the market is underestimating Microsoft's AI potential.

Analyst Rationale

Deutsche Bank believes the market is undervaluing Microsoft, particularly in AI. The analysts noted that a recent CIO survey showed AI becoming a top investment priority, which should boost demand for Azure cloud services.

Context

The reiteration follows a strong year for MSFT, with shares up over 20% year-to-date in 2026. Microsoft continues heavy AI investments, including its partnership with OpenAI and the Copilot rollout.

What We Conclude

Deutsche Bank's call reinforces analyst confidence in Microsoft's AI strategy, but investors should consider competitive risks and the stock's elevated valuation.