Microsoft Stock Eyes Major Gains With New Buy Rating

Microsoft shares started the week at 393 dollars after a strong run that saw the stock climb over 7 percent since mid June. Investors are watching closely as the company attempts to push past the 400 dollar resistance level, a goal it nearly reached during trading last week.

Financial analysts at TD Cowen are keeping their buy rating on the stock. Analyst Andrew Sherman shared a positive outlook with clients, suggesting that the company is set for significant gains in the coming months. He maintains a price target of 540 dollars, which represents a potential return of about 37 percent from current levels.

This confidence is tied to the company massive spending on artificial intelligence. With 120 billion dollars allocated to data centers and custom hardware like Maia accelerators, the firm is building its own infrastructure to support future tech needs. Analysts believe this strategy will help push the stock price well beyond 500 dollars as the company cements its position in the sector.

Traders are now waiting to see if Microsoft can sustain its momentum and break through the 400 dollar ceiling. If it happens, the path toward the higher targets set by Wall Street could be much clearer.