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Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Best American Tech Stocks to Buy. On April 30, Stifel increased its price target on Microsoft Corporation (NASDAQ:MSFT) from $392 to $415 and kept its Hold rating on the stock.

The research firm pointed to Microsoft Corporation’s (NASDAQ:MSFT) latest quarterly results, which showed Azure revenue coming in about 100 basis points higher than expected. The company added 5 million Copilot Microsoft 365 users compared to the previous quarter and reported slightly better profit levels than expected.

Microsoft Headquarters

Microsoft Corporation’s (NASDAQ:MSFT) management said they expected Azure growth to accelerate in the fourth quarter and suggested this momentum will continue into the first half of fiscal year 2027. The company also gave early guidance for fiscal year 2027, which included capital expenditures of $190 billion for calendar year 2026.

Stifel pointed out that the stock stayed mostly unchanged in after-hours trading, even after the positive comments on Azure growth and double-digit operating income growth guidance. The research firm said that investors may be cautious because of capital expenditure growth surpassing commercial cloud growth by over two times.

Microsoft Corporation (NASDAQ:MSFT) is an American technology company that specializes in AI-powered cloud, productivity, and business solutions. The company develops and markets software, services, and hardware.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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