The US stock market has been increasingly volatile in the first three months of 2025. That has led projections to be shrouded in continued uncertainty amid geopolitical tension and a fragile US economy. Subsequently, Microsoft (MSFT) has recently gotten a price target cut and an outperform rating, with the stock eyeing $475.

According to Wedbush, the target for MSFT has been dropped from its previous $550 to its current $475. In their outlook, the analysts note that the forecast cut was driven by ongoing economic challenges affecting the market. The Magnificent Seven have struggled to navigate continued turbulence, with Microsoft (MSFT) being no exception. With continued uncertainty about US tariffs, the US stock market continues to see red. Thus, Microsoft is facing mixed sentiment from analysts, with the $2.9 trillion firm facing what experts have called an “economic Twilight Zone.”

Furthermore, Microsoft is in the race for top company by market capitalization, and the recent market drop has helped its case. Currently, MSFT is less than $100M behind Apple (AAPL) for the biggest company in the US by market capitalization. The recent market collapse caused Apple Inc. to fall out of the $3 trillion market cap club. While the market slump is hurting stocks, fortunately for Microsoft it is helping in that realm.

Now, the question is, will things turn around for the Windows developer? Microsoft has emerged as one of the leaders in artificial intelligence over the last year. The firm made waves when it became an early investor in ChatGPT developer OpenAI, and that has paid off massively. Moreover, its AI investment has fueled success in its cloud sector. The company has seen its cloud revenue increase 20% to $24 billion in Q1, according to a recent report. These factors could point Microsoft and MSFT stock in the right direction in the remainder of 2025.

Currently, 92% of analysts have a buy rating on the stock, according to CNN. Moreover, it holds a $500 median price target, up 32% from its current position. On the high end, it has 59% upside, with a $600 projection. Additionally, its low-end price point this year is at $415, which is still up 10% from its recent decline.

The US stock market has been increasingly volatile in the first three months of 2025. That has led projections to be shrouded in continued uncertainty amid geopolitical tension and a fragile US economy. Subsequently, Microsoft (MSFT) has recently gotten a price target cut and an outperform rating, with the stock eyeing $475.

According to Wedbush, the target for MSFT has been dropped from its previous $550 to its current $475. In their outlook, the analysts note that the forecast cut was driven by ongoing economic challenges affecting the market. The Magnificent Seven have struggled to navigate continued turbulence, with Microsoft (MSFT) being no exception. With continued uncertainty about US tariffs, the US stock market continues to see red. Thus, Microsoft is facing mixed sentiment from analysts, with the $2.9 trillion firm facing what experts have called an “economic Twilight Zone.”

Furthermore, Microsoft is in the race for top company by market capitalization, and the recent market drop has helped its case. Currently, MSFT is less than $100M behind Apple (AAPL) for the biggest company in the US by market capitalization. The recent market collapse caused Apple Inc. to fall out of the $3 trillion market cap club. While the market slump is hurting stocks, fortunately for Microsoft it is helping in that realm.

Now, the question is, will things turn around for the Windows developer? Microsoft has emerged as one of the leaders in artificial intelligence over the last year. The firm made waves when it became an early investor in ChatGPT developer OpenAI, and that has paid off massively. Moreover, its AI investment has fueled success in its cloud sector. The company has seen its cloud revenue increase 20% to $24 billion in Q1, according to a recent report. These factors could point Microsoft and MSFT stock in the right direction in the remainder of 2025.

Currently, 92% of analysts have a buy rating on the stock, according to CNN. Moreover, it holds a $500 median price target, up 32% from its current position. On the high end, it has 59% upside, with a $600 projection. Additionally, its low-end price point this year is at $415, which is still up 10% from its recent decline.