Microsoft, one of the world’s largest tech companies, has sold off heavily over the past few weeks due to concerns about AI spending. The stock price is down nearly 30% from its all-time high, but the author believes this is a rare buying opportunity.
The company is excelling in its chosen path and has a neutral stance on generative AI models, allowing it to capitalize on the rise of AI computing without needing to invest heavily in internal development. Microsoft’s Azure division is driving growth, with revenue rising 39% year over year.
Analysts expect Microsoft’s revenue to grow at a 16% pace in fiscal 2026 and 15% in fiscal 2027, with earnings per share increasing from $19.02 to $23.45 over three years. If the stock returns to its historical price-to-earnings multiple of 33, it could value at $774, indicating a potential doubling of the stock price in three years.
This scenario suggests that Microsoft is undervalued and poised for significant growth, making it an attractive buy opportunity for investors.
Source: https://www.fool.com/investing/2026/02/28/prediction-this-will-be-microsofts-stock-price-in