Goldman Sachs Raises Microsoft Price Target to $550 Amid AI Boom

Goldman Sachs, a big investment firm, showed it believes in Microsoft’s future by raising their price target for its stock. The firm has increased the target by $70 to $550. The increase means the firm thinks that Microsoft’s stock could go up by about 19.8% from its last closing price. 

This announcement comes right after Microsoft’s Build conference, which started on May 19 and highlighted their latest work in artificial intelligence (AI). It shows Goldman Sachs is confident that Microsoft’s AI projects will help the company grow a lot.

According to a CNBC report , analyst Kash Rangan pointed out key reasons why Microsoft is growing. He stated that Microsoft first launched GitHub Copilot, a tool that automatically writes, runs, and checks code, making work easier for people who want to be more productive. Next, Microsoft’s Azure AI Foundry, a platform for building AI tools, has gained many users quickly. 

The firm is also expanding its Azure cloud services by adding more regions and data centers, which will make its system stronger. Lastly, Rangan liked the Model Context Protocol, a new system that helps developers connect AI tools with other programs, calling it a big step forward for Microsoft’s AI technology. These updates show Microsoft is doing well both in AI and tech.

Microsoft is putting a lot of effort into growing its AI business, especially with its advanced tools, which help people to work smarter. These initiatives and the focus of the firm are making people hopeful about Microsoft’s future. According to Rangan, Microsoft is well-positioned to capitalize on the shift in AI from basic development to the creation of valuable applications. 

This could lead to a business model that makes more money with less spending, much like how Microsoft succeeded with its cloud computing. Many experts on Wall Street are positive, with 56 out of 63 analysts saying Microsoft’s stock is a worthy buy. 

As of May 20, 2025, Microsoft’s stock has already gone up 8.9% this year. Microsoft’s growth in AI is occurring amidst concerns about rules and regulations in the US. The situation is important for the firm because its AI and cloud projects are part of this mix. 

Despite these concerns, Goldman Sachs still believes Microsoft is in a great spot to succeed in the changing world of AI, showing its confidence in the company’s future.