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Why do you acquire Microsoft Stock as technical shrapnel

Microsoft today

Microsoft Co.
460.69 dollars +10.51 (+2.33 %)

As of 05/27/2025 04:00 pm

52 weeks
$ 344.79

468.35 dollars

Profit
0.72 %

P/E ratio.
37.09

The target price
$ 513.13

the Seven wonderful stocks It was gathered since the end of April. The main catalyst was better profits and guidance than expected. However, unlike the year 2023 and 2024, the shares are not traded in complete harmony. Some technology shares outperform the rest, And Microsoft Corporation Nasdak: msft He is one of those names.

Since reaching its lowest level in 52 weeks in early April, MSFT shares rose about 33 %. This has turned to the arrow in 2025. It also trades over the past 12 months. However, with a memorial day behind investors, the trading volume may decrease, leaving investors wondering what to do with Microsoft before the company reports the profits again in late July.

The answer may come from Nvidia Corp. Nasdak: nvda In the short term as well as the broader economy. But in the long run Investors can keep the stock confidence Add to their positions to any meaningful decline. Analysts maintain their prices, including Goldman Sachs Group Inc. Nyse: gsThe target price on MSFT shares to $ 550 from $ 480 on May 21.

The shift in CAPEX spending may increase the financial statements

During the past year, The growing capital expenditures have risen to the decrease in the total Microsoft margin. The total total of the company The margin does not show a sharp decreaseBut it also does not grow as some investors want.

This is because of the company’s cloud department and the amount of spending required in the data center area. The company simply did not have enough capacity to meet the demand. Converting the rented space into new material facilities is necessary for AI’s plans for the company, but Microsoft’s spending came at a cost on profits and free cash flow.

This does not mean that Microsoft will not continue to spend, but this type of spending that will do will be more directly compatible with future revenues. In this case, this means that the devices (i.e. the CPU and the graphics processing unit) needed to build the company’s server infrastructure.

Although the profits will be clicked on, The margins are expected to improveWhich may be sufficient to justify running to the highest level ever. At least, it supports The bull issue is long -term MSFT shares.

Practicing what they preach about artificial intelligence

Investors can grow skeptics when they hear that companies talk about cost reduction initiatives. The logic is that you cannot cut your way to growth. However, the investors were more positive about the Microsoft advertisement that it was Reducing about 3 % of its workforce.

The reason is Amnesty International. In this case, Microsoft reported that it publishes its artificial intelligence tools in areas such as customer service, customer support, sales and financing.

This means that the company Maintaining productivity While too Improving profits.

NVIDIA may be a short -term transformer on MSFT shares

Microsoft stock forecast today

The stock price expectations for 12 months:
$ 513.13
Moderate purchase
Based on 34 analyst classification
The current price 460.69 dollars
High expectations $ 600.00
Average expectations $ 513.13
Low expectations 475.00 dollars

Microsoft shares details details

The increasing spending of devices from Microsoft comes largely Nafidia. We may learn more about this when NVIDIA reports on profits on May 28. Currently, merchants seem quieter in the three months to the next four.

Feelings may change these short -term calls if Nafidia leads strong instructions. And if NVIDIA appears in the light, the downside already appears in placement options.

However, there may be another reason for the short -term up -to -date expectations for Microsoft’s evaluation. At 34X forward, MSFT shares are traded with their average for three and five years.

However, if momentum does not find a better goal to shoot it, like a large company Microsoft will continue to attract attention. Traders are more upward in long -term calls, and they support the expectation of stronger economic growth in the second half of the year. In both cases, Microsoft is associated with the place where artificial intelligence expands today, and you are sure to have a seat on the table for the place where artificial intelligence moves in the future.

Before you think about Microsoft, you will want to hear this.

Marketbeat follows the best research analyst at Wall Street, the best performance in Wall Street and the stocks they recommend to their customers on a daily basis. Marketbeat has selected the five shares whose senior analysts are quietly whispered to their customers to buy now before wiping the broader market … and Microsoft was not in the list.

While Microsoft currently has a moderate purchase classification among analysts, higher -rated analysts believe that these five stocks buy better.

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