Wells Fargo Maintains Outperform on Microsoft (MSFT) Despite Lowered Target

The revision followed the work of Wells Fargo’s software-sector update for 2026, successful which the expert squad argued that AI volition stay “the sanction of the 2026 game”. They highlighted that investors tin capitalize connected opportunities successful the AI scenery crossed 3 superior areas: infrastructure providers, established incumbents, and innovation-led platforms. While the steadfast expects variability successful adoption trends, the underlying secular drivers are expected to underpin show done 2026.

Asif Islam / Shutterstock.com

Earlier successful the week, Jefferies expert Brent Thill besides reiterated his Buy standing and $675 terms people connected Microsoft Corporation (NASDAQ:MSFT), citing the company’s efforts to integrate AI crossed its merchandise portfolio arsenic a large maturation catalyst. In a broader enactment connected the bundle sector, Thill argued that “2026 volition beryllium different twelvemonth of gradual AI monetization,” and that helium sees “ample country for aggregate enlargement erstwhile AI monetization begins to assistance growth.” In the mega-cap space, Microsoft and Meta were Jefferies’ apical picks.

Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide scope of software, unreality services, devices, and concern solutions, serving some idiosyncratic users and endeavor customers worldwide.

While we admit the imaginable of MSFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 7 Spin-Off Companies successful 2025 and 11 Best Stocks You’ll Wish You Bought Sooner.

Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.