Microsoft Is Having Its Worst Year Since 2022, but This Analyst Says It's a Setup for a $450 Rally
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Microsoft's stock has fallen 24% from its all-time high, but analyst Yi Fu Lee sees a buying opportunity with a $450 price target. The company's investment in AI infrastructure is driving growth in its cloud and software businesses.
Microsoft's stock has had its worst year since 2022, down 15% in 2026. The company's aggressive capital spending on AI infrastructure has raised concerns among investors. Microsoft spent $37.5 billion on capex in Q2 FY 2026, largely on semiconductor chips. Despite this, the company's revenue jumped 17% to $81.3 billion in Q2 FY 2026, driven by its Microsoft 365 suite and AI-powered cloud business. Analyst Yi Fu Lee sees a buying opportunity, with a $450 price target representing 10% upside. Microsoft's cloud market share is 21%, second only to Amazon's, and the cloud computing market is expected to reach $3.35 trillion by 2033.
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